Blog
Cadbury - too much to digest?
Posted 08/09/09
All the noise is that any offers will have to be between 800p and 900p with a significant element in cash.
Will management be able hold off the predators?
We can’t believe Kraft will be alone and that Nestle, Hershey, Mars or even an outsider won’t join the party.
Mars is probably the leat likely acquirier at this stage as it is still ‘digesting’ Wrigley - although it’s never good to swallow gum!
The Trident (chewing gum) bit of Cadbury might ironically be the main attraction!
Initial reacation to Kraft’s move may be very positive - wait for the US market open!
All the talk is how much Kraft was prepared to pay for Danone’s biscuits division (2.3x Sales) and Mars for Wrigley (3.7x sales). The latter really was a unique deal for ‘the’ dominant market player.
A Cadbury deal would be well in excess of Nestle’s acquisition budget (1.5bn to 2bn) and there would be anti-trust problems so it would need a partner.
We don’t think Cadbury management is finished either and they could go on offensive.
The boom times of M&A are back!?
This entry was posted 2 years, 5 months ago and was filed under Cadbury.
