Cadbury wants to remain independent
The Board of Directors of Cadbury will this week issue a defence document regarding the bid by US giant Kraft Foods. It is understood that the Cadbury directors believe they can remain as an independent entity and deliver significant shareholder value in the short, medium and longer term. However, with rumoured bids from Hershey and Nestlé still in the offing it would appear that the directors will have a battle on their hands to remain independent.
If the company is to be taken over there is no doubt that the £10.1 billion bid currently on the table from Kraft Foods will need to be bettered to gain acceptance from Cadbury shareholders. The share price of Cadbury would indicate that a higher offer may well be "just around the corner" although the fact remains that the only offer on the table at the moment is that from Kraft Foods. So can Cadbury really remain independent?
While it is impossible to say what will happen to Cadbury at this point in time, the fact remains that the company is "in play" and interest in the operation is continuing to build. However, we could see a stock market crash in the meantime, we could see liquidity dry up in the money markets or some other unforeseen event could shake the market. Nothing is for certain and if you're looking to invest in Cadbury, or have shares to sell, it is vital that you take independent financial advice.
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