FACTBOX: How the new Kraft Cadbury offer works

(Reuters) - Kraft has sweetened its 10.2 billion pound ($16.4 billion) offer for British confectioner Cadbury by raising the cash component 60 pence to 360 pence per share and cutting the share element to match.

U.S. group Kraft Foods Inc raised the funds with the sale of its North American pizza unit for $3.7 billion to Swiss food company Nestle. Nestle, for its part, said it had no intention to bid for the British chooclatier, ending speculation about one potential rival bidder.

Here's how the new offer works:

** Kraft's original deal, which has been rejected by Cadbury, was 300 pence cash plus 0.2589 new Kraft share for each Cadbury share.

It was worth around 743 pence at 0830 GMT, when Cadbury was down 1.7 percent at 791.5 pence.

** The alternative new deal is 360 pence cash plus a reduced fraction of a new Kraft share to be determined by January 19 and based on prevailing prices.

This fraction will be lower than 0.2589, and would be around 0.2237 Kraft share at current prices.

** Cadbury shareholders will be able to accept either deal, both of which will have the same notional value until the new share fraction is fixed.

(Compiled by Dan Lalor)