Cadbury melts into the arms of Kraft Foods
Cadbury and Kraft Foods today issued a joint statement confirming they were "finalising the terms of a recommended offer" which is believed to be the region of £8.50 a share. The recommended offer is expected to be announced today ending 150 years of independence for the UK chocolate giant. But is this the end of the game?
Despite rumours that US outfit Hershey is waiting on the sidelines with a potential counteroffer it seems as though Kraft Foods has stolen a march and Cadbury appears almost certain to agree a deal today. The rumoured new bid, around £8.50 a share, is a significant increase on the £7.71 revised offer announced just a few days ago and values Cadbury at around £12 billion.
After a period of uncertainty and confusion regarding the future of Cadbury we are now at the end game and the company has finally decided to sit down with its US competitor and agree a deal in the best interest of shareholders and the company. While ultimately it will be up to shareholders to agree the takeover, a recommendation from the Cadbury board carries a lot of sway and is likely to ensure the deal goes through.
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