British chocolate maker Cadbury announced Tuesday that it was finalising the terms of an improved takeover bid from US food giant Kraft after a bitter battle.

"The boards of Kraft Foods Inc. and Cadbury plc confirm that they are finalising the terms of a recommended offer for Cadbury plc. A further announcement will be made shortly," the companies said in a statement.

British media reported Tuesday that Cadbury was set to agree to a takeover in a deal that could value the London-listed group at up to 11.7 billion pounds (13.3 billion euros, 19.2 billion dollars).

Prior to Tuesday, Cadbury had repeatedly rejected the takeover offer from Kraft, arguing that it was "derisory."

However, reports suggested that a deal could be announced later Tuesday after the pair held late-night talks on Monday, move that would end a prolonged war of words that has raged since the US firm launched a hostile bid last year.

Kraft had until Tuesday to raise its cash-and-shares offer, which currently values the iconic British firm at about 10.5 billion pounds.

The BBC, which did not cite its source, said Kraft might hike its offer to between 840 and 850 pence a share, adding that at 850 pence Cadbury would be valued at around 11.7 billion pounds.

A Cadbury spokeswoman refused to comment further on Tuesday, while Kraft was unavailable for comment.

Cadbury -- created in Birmingham, central England, in 1824 -- is the world's secondbiggest confectionery company behind Mars. Its leading brands include Dairy Milk chocolate and Trident chewing gum.

Kraft, the world's second biggest snacks group after Nestle, makes numerous well-known products including Dairylea cheese, Milka and Toblerone chocolate and Oreo cookies.