Kraft began it's hostile takeover bid in December but so far management within the company have not been pleased with the offer that Kraft has made. With rising competition from Hershey, who are planning on placing a bid by next week, Kraft are under pressure to raise their bid. Currently, Kraft is offering a bid of 10.5bn which so far has been rejected. Hershey is projected to place a bid of 10.74bn although this figure has not been confirmed. US billionaire Warren Buffett has also put pressure on Kraft as he warns them not to overpay.
I feel that this article does a good job at demonstrating the current situation that Kraft and Cadbury are in. It will be interesting to see if Kraft come back on the deadline with a higher bid, as if they come back with their current bid and it is rejected, then they won't be able to bid for another year. It will also be interesting to see what Hershey bring to the table and if they will out bid Kraft.
This is an interesting article. I find it interesting that Kraft is so interested in Cadbury since they are not well known for their chocolate. Hershey's on the other hand is all about chocolate which is why it makes more sense for them to make a higher bid for cadbury.
ReplyDeleteI wonder why Kraft is being so pressured to buy Cadbury. It seems to me like Hershey's would be a better suiter to run the chocolate company. I also think it's interesting because Cadbury is really only sold in the US around Easter time. I just hope they don't stop selling those Caramel Chocolate Easter Eggs.