Europe's main markets have fallen back in early dealings on Tuesday, though the German Dax is still above the 6,000 mark, with investors focusing on news that Kraft raised the cash portion of its hostile bid for Cadbury after agreeing to sell its frozen pizza business to Nestlé.

Meanwhile, Swiss foods giant Nestlé has told the UK Takeover Panel it does not intend to make, or participate in, a formal offer for Cadbury.

Across the markets, the German DAX is down 18 points at 6,030 with the French CAC 16 points lower at 3,998. The Swiss market is 37 point higher at 6,595.

US foods group Kraft said today that it is to offer an increased cash element in its 300p cash plus 0.2589 Kraft shares bid for Cadbury.

After selling off its North American pizza business to Nestle it intends to use some of the funds from the sale to offer Cadbury shareholders an additional 60p per Cadbury share or 240p per Cadbury American Depositary Share in lieu of some of the Kraft shares they would be entitled to after accepting the Kraft offer.

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