STOCKS NEWS EUROPE-Cadbury dips as Kraft Q3 disappoints

Cadbury CBRY.L shares dip as much as 1.5 percent before recovering to trade off 0.4 percent at 774 pence after bidder Kraft (KFT.N) disappoints investors with its third-quarter results late on Tuesday trimming back ideas of what Kraft may be prepared to pay for Cadbury.

Kraft reported weaker-than-expected third quarter revenue and cut its full-year 2009 sales growth forecast pushing its shares down in after-hours trading.

Kraft (KFT.F) shares in Frankfurt are off 1.9 percent at 18.39 euros in early trading.

Kraft's cash and share offer for Cadbury is currently worth 733 pence, but may dip further when Kraft shares open in the United States, while Kraft needs to come up with a formal bid by Nov. 9.

"We doubt Kraft will go over 780p," says JPMorgan analyst Pablo Zuanic.

Reuters messaging rm://david.jones.reuters.com@reuters.net