On September 9, 2009
Why Is Cadbury a Takeover Target?
Cadbury may’ve rejected US food giant’s Kraft’s initial £10.2bn offer — which valued Cadbury at over 30 times over last week’s closing price — but as far as analysts are concerned, it now has a bullseye on its back. Kraft’s boss Irene Rosenfeld was quoted as saying she thought Cadbury might struggle if it goes it alone in the current market. Why? Last year’s demerger was a costly exercise executed as developed economies were starting to tank. It lost its number-one confectionery company title to Mars-Wrigley. Its recent history’s been dotted with product problems. But Cadbury’s brand value — particularly its heritage — remains intact, whereas Kraft (d.o.b 1903) was bought and extended to become what Carl Mortished in the…
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