NEW YORK (Bloomberg) — Kraft Foods Inc., the world's second- largest food company, plans to issue $9.5 billion of debt in the biggest bond offering in almost a year to finance the cash portion of its takeover of Cadbury Plc, according to a person familiar with the transaction.

Cadbury shareholders accepted Kraft's takeover offer, valued at £11.7 billion ($18.5 billion), on February 2, ending a five-month stand-off and creating the world's largest candy company. Kraft raised its offer for Cadbury last month, increasing the cash portion of the bid and reducing the stock part. The company planned yesterday to issue at least $4 billion of debt, the person said. Investors concerned about the strength of the US economy may favour the foodmaker's debt because its businesses aren't highly susceptible to recession, said William Larkin, who helps manage $500 million at Cabot Money Management in Salem, Massachusetts.

"The food business is less economically sensitive, so it's the perfect play in this kind of marketplace," Larkin said in an interview yesterday. "Could banks have another leg down? It's possible, if unlikely. Will Kraft be around in 10 years? It's very likely."

Kraft, based in Northfield, Illinois, plans to sell $1 billion of 3.25-year notes, $1.75 billion of six-year notes, $3.75 billion of 10-year debt and $3 billion of 30-year debt, said the person, who declined to be identified because terms aren't set.

The food company's planned sale is the biggest US dollar bond offering since March 17, when Pfizer Inc. borrowed $13.5 billion.