Will Hershey have to bid £8.60 a share for Cadbury?
The twists and turns regarding the Cadbury takeover continue with speculation in the market today that Hershey is on the verge of launching its own independent bid for the operation. While analysts are sceptical as to whether the company could match the financial power of Kraft Foods, assuming Kraft Foods is determined to acquire Cadbury, some analysts expect a bid in excess of £8 a share and possibly as high as £8.60 per share.
While analysts at Jefferies International believe that there is only a 15% chance of Hershey actually spoiling the party for Kraft Foods, it has added to the speculation and we saw the Cadbury share price move ahead today. When you consider that Hershey itself is only valued at around £6 billion the acquisition of Cadbury's, which would cost in excess of £11 billion, is a big risk and a big gamble to take.
We are moving towards deadline day regarding final offers for the company and speculation is beginning to mount regarding a potential auction between Kraft Foods and Hershey, although many believe it is really a one horse race. However, holders of Cadbury shares will no doubt appreciate the speculation which has pushed the price higher over the last couple of days.
Share this..
Related stories
RBS takeover of ABN Amro to be investigated
The £60 billion acquisition of ABN Amro by Royal Bank of Scotland back in 2007 is set to be investigated by the Financial Services Authority (FSA). While many people have been calling for a formal investigation of the takeover it is a surprise to see that nearly 2 years after the acquisition the FSA is set to act. So what is the basis of the investigation?
The investigation will lo...
Why is there no pay restraint in the city?
As the battle between Gordon Brown and the UK banking sector continues unabated there are serious concerns as to why the city has yet to instil significant pay restraint in these difficult times. Aside from the fact the authorities are being forced to bail out a number of UK banks, leaving the UK taxpayer with a substantial shareholding in many, it appears that pay rises and bonuses are still the...
Read MoreCo-op to lay off 1,000 workers
Co-operative Financial Services (CFS) has announced that it will lay off 1,000 employees this year in order to cut costs to fund a £250 million growth programme.The programme aims to expand the company's operations in retail, corporate banking and general insurance.CFS which consists of the Co-operative Bank and internet bank Smile, hopes to reduce its operating costs by £100 million by June 200...
Read MoreShould unsolicited financial promotions be allowed?
The announcement that MBNA, one of the U.K.'s major credit card companies, will cease to issue credit card cheques after 31 March has prompted a discussion amongst UK consumers. Each and every day brings new and often unsolicited financial promotions to many in the UK at a time when funds are tight and credit can be difficult to come by. However, should unsolicited financial promotions be allowed?...
Read MoreUK supermarkets deceiving customers
20/05/2015 UK supermarkets are still misleading customers via deals and offers and are breaking government guidelines, according to consumer group Which?. Which? has said that it has found examples of reduced prices when the shop claims there is an offer being sold for longer than the higher “original” prices of the products. They also found misleading multi-buy offers, where products on...
Read More