Wall Street Journal

Will Kraft (NYSE:KFT) strategy succeed? 10 November 2009 Kraft bid not gets even remotely close to the true value of the company, and the absorption of Cadbury by a conglomerate with a low-profile business model implies unattractive prospects, says British company that is being subjected to the hostile bid by the U.S. company. Kraft Foods continues with negotiations and will not be giving up. And I am not referring to the conflict that its Argentine subsidiary has with its workers for several months now Kraft (NYSE:KFT), and how difficult that is to do business in Argentina, but the hostile bid to acquire the British Cadbury. The operation of having the approval of the shareholders of Cadbury would be financed in a high percentage with bank credits retrieved from entities like Citigroup (NYSE:c) or Deutsche Bank (NYSE:DB) for a total of $9 billion. Why you are so interested Kraft to acquire Cadbury? The acquisition of the British Cadbury helps Kraft Food consolidate your pos.

icion as the second-largest food company in the world, behind Nestle S.A., and also achieve significant cost reductions. What do think Cadbury executives in this regard? Such proposals usually generates fears and losses of jobs, so many resistances occur in such situations. Meanwhile, since Cadbury directory recommended to the shareholders of the company, rejecting the offer by 9,800 million pounds sterling (US $16.280 million), the United States made by the company on the grounds that is a value that is very far from the true potential of the British. In a note by Dana Cimilluca and Jeffrey Maccracken to the Wall Street Journal, they reproduced statements by the CEO of Cadbury who termed derisory bid from Kraft around 715 pence per share. The Board of Directors of quick reflexes Cadbury, already has the support of some major shareholders that do not they want no agreement with Kraft that valued their titles at least 850 pence.

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