Friday, November 20, 2009
Chocolate giants ponder Cadbury bid
Hershey and Ferrero are competing with Kraft's to buy Cadbury. Cadbury has rejected the Krafts bid of $16.4 bn. Shares in Cadbury rallied 1.21 per cent on Wednesday to close at 797.50 pence in London. According to Wall Street Journal Hershey is getting aggressive about getting Cadbury. But it will be for Hershey to come up with a higher bid than Kraft. Hershey owned $119 million in cash and $1.5bn in long-term debt. 85 to 90 % of Hershey's sales are in the relatively slow-growth market of the U.S.
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This is interesting, I was under the impression that the deal with Kraft was all but sealed. Cadbury has been very successsful and has an established corporate culture they are very proud of. It will be interesting to see how an acquisition folds out, whomever gets them.
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