Cadbury hits new high as bidders circle – By David Jones
Nov 23, 2009 Make Money Online
Speculation of a bid battle for Cadbury between Kraft Foods and other rivals who are considering making takeover offers lifted shares in the British confectioner to a new high, analysts said on Monday.
Most of the other big players in the global confectionery industry — U.S.-based Hershey Co, Italy’s Ferrero and Switzerland’s Nestle AG — are now weighing bids themselves, according to Reuters sources and media reports.
“We think the probability of a competitive auction for Cadbury has increased,” said analyst Martin Deboo at brokers Investec Securities.
Many analysts doubt whether either of these three would bid alone, but possible combinations of them could trump Kraft’s current cash and shares 9.9 billion pounds ($16.4 billion) bid or push the American food giant into a higher offer.
Kraft made its cash and shares bid for Cadbury earlier this month, which currently values Cadbury shares at around 723p, and may raise its bid if other rival bidders emerge, said a source familiar with the situation late Sunday. Read the rest of this entry »
Tags: Bidders Circle, Cadbury, Hershey Co, Stock Market
