Is there a sting in the tail for Cadbury investors?
Despite the fact that Cadbury directors have never hidden his disdain for American giant Kraft Foods and the unwelcome takeover bid which is now on the table, it is looking more and more likely that Kraft Foods could be the only serious bidder for one of the U.K.'s best-known companies. It is ironic that perhaps Cadbury directors will at some point need to sit across the table from their Kraft Foods counterparts and hammer out an acceptable deal for both parties.
Yesterday's confirmation that Nestlé has effectively ruled itself out of the Cadbury takeover saga, clarifying that it will neither act on its own or as part of a consortium, has severely weakened the power of Cadbury directors in the short term. While US outfit Hershey is still in the background there is a growing belief that the company will struggle to raise the necessary finance, especially now that Nestlé has confirmed it will not be entering the fray.
The directors of Kraft Foods have attracted some criticism over the last few weeks for their quiet approach to the takeover saga but over the last few hours it has become apparent that this particular strategy may well be panning out to perfection.
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