Hershey finally gives in and walks away
US outfit Hershey has today walked away from a potential bid for Cadbury with many analysts expecting the announcement today. The company had apparently been on the verge of a potential counterbid for the UK giant but the financial muscle and the fact that the Kraft Foods offer was recommended by the board appears to have swayed the company. This now leaves the way open for Kraft Foods to complete its $19 billion offer which is set to go unconditional in the short term.
Despite the various criticisms in the press from shareholders of Cadbury, Kraft Foods and controversial comments from the UK government the deal appears to have been sealed and will go through in the short term. What will happen to the Cadbury workforce in the months and years ahead remains to be seen, because Kraft Foods, despite pressure from the UK government, has been unable or unwilling to give assurances about the UK workforce.
The political fallout from the takeover may continue in the short to medium term but ultimately investors have spoken and the company will now become part of a combined Kraft Foods and Cadbury outfit. Who will be next to be picked off by overseas predators?
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