Can Kraft Foods afford a higher offer for Cadburys?
UK food giant Kraft Foods is still very interested in taking over UK chocolate manufacturer Cadbury's with a £12.3 billion offer still on the table but yet to be presented to shareholders. The offer is worth around £7.45 a share although the price of Cadbury shares is currently above this level with many people believe in a higher offer will come in due course, either from Kraft Foods or a third party. So will Kraft Foods increase its offer?
A number of analysts have looked at the balance sheet of Kraft Foods and believe that the company could increase its current offer by 20% which would value the Cadburys in the region of £8.50-£9.00 per share. Analysts believe that the suggested increase in the offer price would be a ceiling affordable to Kraft Foods at this moment in time without potentially impacting upon the company's credit rating. So who will win the battle?
While there are still hopes of a third party entering the fray and pushing the bid price for Cadburys higher, the longer the situation goes on without a counter offer or third-party confirming an interest in Cadburys, the stronger the position of Kraft Foods. It looks as Cadburys is in play and Kraft Foods is determined to take over the company, which as we covered recently, would appear to be a perfect geographical fit for the US giant.
Share this..
Related stories
MPC dove predicts rapid inflation fall
Inflation will fall to the two per cent target by the summer, monetary policy committee (MPC) member David Blanchflower believes.In a speech last night at the University of Stirling, the MPC's leading dove indicated his continued commitment to fighting the next rate hike, widely expected to take place during the next quarter.The Bank of England's MPC has voted to raise interest rates three times i...
Read MoreBank of England steps in to calm market fears
The Bank of England has today given the first indication that interest rates may rise before the quantitative easing program is brought to an end. There had been significant concerns in the market that the government's requirement to raise funds to fight the economic downturn and the Bank of England's resale of bonds acquired in the quantitative easing program may flood the market with fixed inter...
Read MoreUK government under pressure to extend car scrappage scheme
As we indicated yesterday, the UK government is coming under increasing pressure to extend the £300 million car scrappage scheme which has seen a significant number of older cars scrapped in exchange for discounts on new vehicles. However, a 31.5% reduction in new car production in August has hit the UK car manufacturing sector very hard with fears of a return to the depressed situation experienc...
Read MoreNicola Sturgeon attacks UK spending cuts
26/05/2015 First minister Nicola Sturgeon has attacked the ‘scale and speed’ of spending cuts that the UK government are planning to make. Speaking at the Tynecastle Stadium, the home of Heart of Midlothian FC, Ms Sturgeon said the SNP will oppose deep spending cuts whilst continuing their support for membership in the European Union. The first minister said: "The result of the genera...
Read MoreProblem debt effects Brits mental health
10/02/2015 According to research from the Debt Advisory Centre (DAC), 16% of people in the UK believe they have a problem with debt. The survey conducted found that 16% of UK adults, which works out to approximately 8 million people, believe they personally have a “debt problem”. People aged between 35-44 years old are most likely to believe that their borrowing has reached “probl...
Read More