FACTBOX - What next if Kraft makes formal bid for Cadbury

(Reuters) - The Takeover Panel has given Kraft Foods (KFT.N) until November 9 to make a formal bid for chocolatier Cadbury (CBRY.L) or walk away for six months.

Here is how the process will play out if the North American food group says it intends to make a formal offer, based on rules which apply to any situation involving a British target:

* Kraft sets out the terms of its intended firm offer under rule 2.5 of the British takeover code. If the offer includes cash, Kraft's financial advisers must confirm it has sufficient resources in place to execute the plan at this point.

Any announcement before November 9 means this deadline no longer applies.

* Kraft then has 28 days to send the formal offer documents to Cadbury's shareholders. When investors receive this information, so-called D-day, the standard 60-day offer period kicks in.

* Cadbury has to let its shareholders know what it thinks of Kraft's bid within the first 14 days of the offer period.

* Cadbury can issue new information which would have a material impact on the takeover situation up until day 39 of the offer period. This could include, for example, profit forecasts, the disposal of a major subsidiary or a defensive acquisition.

* Kraft must make its final offer by day 46. It can increase the offer as many times as it likes up until this date, but not lower it.

* Cadbury shareholders have a further two weeks to accept or reject Kraft's final offer. In friendly deals, the Takeover Panel may be prepared to extend this deadline if it is asked to do so by the board of the target company.

* If Cadbury's shareholders accept the final bid, the offer is declared unconditional as to acceptances. This means that some factors, like competition clearance, are outstanding and must be satisfied within 21 days.

(Compiling by Victoria Howley; Editing by David Holmes)