When you have an initial bid rejected as derisory it is probably not a good idea to come back with a lower offer expecting a big change of heart from your prey.
This though is exactly what the management team at Kraft has decided to do in bid to win control of UK rival Cadbury .
Because of the rise in Cadbury's share price, the bid now values its shares at 713 pence or 9.8 billion pounds ($16.44 billion) compared with 745p a share, or 10.2 billion pounds, in September, when Kraft made the same offer.
Cadbury’s CEO and Chairman have been very quick to dismiss the bid, fresh from telling a number of reporters over the weekend that they see no reason to join with a company that has traditionally been low growth and is now 'no growth'.
Cadbury itself last month unveiled very strong trading numbers.
A number of Cadbury's major shareholders have backed the management team's strategy, giving the impression that Kraft’s offer is dead in the water.
Why, you ask, would the management team at Kraft attempt such a strategy? There can be only two reasons as far as I can see.