Birmingham-based Cadbury was today braced for a £12 billion hostile takeover bid from US food giant Kraft.

Shares in the chocolate firm rose by 4p in early trading.

Cadbury first rejected a £10.2 billion proposal from the maker of Toblerone, Oreos biscuits and Dairylea in September.

But Kraft is expected to bypass the company’s board and appeal directly to shareholders. The Americans have until 5pm today to table a firm offer or walk away under takeover rules.

As workers, management and investors at the Bournville-based company wait on tenterhooks for a move from Kraft, the Cadbury share price edged up 4p to 763p in early trading today.

Disappointing sales figures at Kraft last week led some to suggest it might abandon its bid, as it affected the value of its cash-and shares approach for Cadbury. A fall in Kraft’s share price means the original £10.2 billion bid is now only worth £9.8 billion.

Sources have suggested Cadbury sees an offer of 850p per share as the starting point for any negotiations – a bid of nearly £12 billion – particularly after its recent strong set of results and potential for overseas growth. Both firms have so far declined to comment.