Qualified advisers answering your
Financial Questions
call 0800 092 1245

Takeover panel reviews Cadbury comments

As we mentioned yesterday, the chief executive of Cadbury, Todd Stitzer, has become embroiled in something of a slanging match with Merrill Lynch over reported comments made at a recent conference. Merrill Lynch seemed to suggest in a recent research note that the chief executive had indicated that a takeout price of 15 times profit, before tax and depreciation, would be a fair offer for the company. This equates to a takeover price in excess of £10 share although very quickly Cadbury asked Merrill Lynch to clarify the situation and confirm that this was not an official statement.

However, the Takeover panel has now become involved in the issue as price sensitive comments such as the one alleged against the chief executive of Cadbury are not allowed within the bid period. This will no doubt muddy the water yet further with regards to the potential merger of Kraft Foods and Cadbury, something which many analysts believe he is almost inevitable unless a "white knight" appears from nowhere.

Takeover laws in the UK are very strict and very detailed and there are many restrictions on what can be said within a potential bid period. All information has to be passed to shareholders and all other parties at the same time, predominantly via either a takeover document or a document rejecting a takeover.

Share this..

Related stories

Financial Guides

Financial Calculators

Our useful calculators can help you get your finances in order:

Latest News


Helpful new tax year facts that could affect you and your money

Blog | Seven helpful new 2016/2017 tax year facts that could affect you and your money. Our recent online blog shares a brief outline on how to stay up to date.

Read more

Useful Links

Popular Searches

Please Enter More Details

Enter More Details