John Paulson Doubles Bet on Cadbury | DealBook (NYtimes)
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John Paulson, the hedge fund manager whose wagers against the United States housing market earned him billions last year, has doubled down on his bet on Cadbury, Bloomberg News reported.Mr. Paulson’s hedge fund, Paulson & Co., increased its stake in the British confectioner the same day that Cadbury rejected a $16.7 billion bid from Kraft Foods.According to a filing with Securities and Exchange Commission, Paulson & Co. now owns 28.5 million shares, or 2.08 percent, of Cadbury after buying 14.8 million shares at 759.59 pence each Monday.Mr. Paulson’s increased bet came as Kraft took its $16.7 billion bid for Cadbury directly to shareholders on Monday, after the board of the U.K. chocolatier rejected the offer as too low.Kraft declined to raise its bid, sticking with its original proposal from September, which offers 3 pounds, or $4.90, in cash and 0.2589 new Kraft shares for every Cadbury share. The offer values each Cadbury share at 717 pence, a 26 percent premium to the price before Kraft made its original proposal.The move by Mr. Paulson comes amid increased hedge fund interest in Cadbury. Eton Park Capital, for example, now holds 2.4 percent of the firm. However, Eton bought some of its shares at levels above 800 pence.