Kraft Foods in talks to dispose coffee business to Sara Lee

Kraft Foods is currently in negotiations to dispose its Maxwell House coffee business to Sara Lee Corporation. The move is reportedly intended to raise approximately $9 billion to put forward a formal proposal to acquire Cadbury.

Kraft Foods is currently in negotiations to dispose its Maxwell House coffee business to Sara Lee Corporation, reported the New York Post. The move is reportedly intended to raise approximately $9 billion to put forward a formal proposal to acquire Cadbury.

The Royal Bank of Scotland is planning to assist Kraft by lending it approximately GBP630 million to prepare for the proposal, reported The MailOnline.

Sara Lee is also planning to expand its coffee business. According to Bloomberg, Brenda Barnes, CEO of the company, announced earlier in 2009 that the company plans to make a large acquisition as well as divest its underperforming businesses. The company disposed its European personal care business to Unilever for approximately $2 billion in September 2009.