Two months after Kraft publicly declared its proposed bid for Cadbury Plc -- now worth about $16.36 billion (9.85 billion pounds) -- Rosenfeld faces a Monday deadline to decide whether to proceed with a formal offer or walk away for at least six months.

Deal watchers expect Rosenfeld to keep her hand in the game. But they question how much she can risk in her pursuit of the British chocolatier, either by making her bid too sweet or by losing a chance to dominate a faster-growing market.

"Irene Rosenfeld's credibility as Kraft's CEO is at risk if the deal doesn't go through, given that it has been played out so publicly," said analyst Warren Ackerman at brokerage Evolution Securities.

Rosenfeld, ranked as the second most powerful American businesswoman by Fortune magazine, has increased investment in Kraft's marketing and product development during her three years as CEO. She has tried to overhaul a corporate culture that often had businesses operating in silos rather than as one team.

But Cadbury would be by far her biggest deal to swallow, after buying Danone SA's biscuits and cereal business for $7.82 billion in 2007.

"Obviously, Kraft needs Cadbury a lot more than Cadbury needs Kraft," said Lee Linthicum, global packaged food research manager at Euromonitor International.

Just this week, Kraft disappointed investors with quarterly revenue that fell short of expectations and took down its annual sales growth forecast [ID:nN03421549] -- living up to the moniker of "low-growth conglomerate" slung at the company by Cadbury Chairman Roger Carr.

Rosenfeld is expected to formalize her initial cash and stock offer for Cadbury, originally worth 745 pence per share and now valued at about 722 pence per share, on Monday.[ID:nL6515552] People close to the deal see her sweetening that slightly down the road to engage a so-far unyielding Cadbury board.

But in the absence of any rival bidders, more industry watchers question whether the deal is up to Rosenfeld to lose.

"Maybe there is an issue here, where that is how Irene is remembered, as the woman that let Cadbury get away," Linthicum said.

CADBURY'S LAST CEO STANDING?

Rosenfeld's counterpart at Cadbury, CEO Todd Stitzer, also has his own legacy at stake in defending the British icon from a takeover by what one Cadbury descendant has called "an American plastic cheese company."

"Todd would not like to be seen as the last chief executive of an independent Cadbury. He is very much a Cadbury man; if you cut him he would bleed purple," said one source close to the CEO, referring to Cadbury's corporate colour used in its packaging.

Cadbury's attraction for Kraft lies in the confection market that a combined company would lead -- and which is growing faster than core Kraft businesses like its Velveeta processed cheese, Kool-Aid drink mix and Maxwell House coffee.

Cadbury, maker of Dairy Milk chocolate, Trident gum and Halls cough drops, also gives Kraft an entry into more fast-growing emerging markets, like India.

Despite the upside, Rosenfeld must also satisfy legendary investor Warren Buffett.

The Oracle of Omaha, whose Berkshire Hathaway Inc is Kraft's largest investor, said in September that Kraft had "a lot to do" to justify the price it offered for Cadbury.

Kraft shares are up only about 1 percent since Buffett made those comments, so Rosenfeld is still using a weak currency as part of a bid.

That has led some analysts to prefer a retreat by Rosenfeld, should the price get too high, and a renewed focus on growing Kraft's business alone.

"We'd prefer that over buying it at any cost, than destroying shareholder value by overpaying," Edward Jones analyst Matt Arnold said.

(Editing by Michele Gershberg, editing by Gerald E. McCormick)