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CBRY Cadbury

863.00
0.00 (0.00%)
28 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Cadbury LSE:CBRY London Ordinary Share GB00B2PF6M70 ORD 10P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 863.00 - 0.00 00:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
0 0 N/A 0

Cadbury Schweppes Share Discussion Threads

Showing 1526 to 1548 of 1825 messages
Chat Pages: 73  72  71  70  69  68  67  66  65  64  63  62  Older
DateSubjectAuthorDiscuss
11/11/2009
08:08
Paulson will short this down to £6. Beware !
mallorca 9
11/11/2009
00:11
Sell - 3 months is a very very long time

Buy back later at lower price

spob
10/11/2009
16:36
Phone calls : insist on an email, everything must be in writing.
Placing shares at a discount is never hard so why cold call jo public?

I'm not so sure about this. Cadbury is very UK centric brand, and does not command much of a premium here in supermarkets.

763p + dealing costs is rather high on the chance of getting £8

With no offer its a £5 share

mryesyes
10/11/2009
16:23
their only after your bank account details tony
frankiestheone
10/11/2009
16:20
KUMALA - Yes, I have been contacted to see if I would be interested IF they (ie. BFund) had an overspill from a sale to an intitution(s) - and that the shares would be at a discount.Sounds too good to be true !!!
Like many such phone calls I suspect some form of carrot or scam - I will keep you posted. Needless to say I am not planning to be biting the carrot !

tonytravel
10/11/2009
16:15
thanks ajmace: just waiting again.... zzzz zzzz
K ;/

kumala
10/11/2009
15:50
They is no doubt they will pay 800p +. Top 10 investors said thats what they want, would Kraft waste their time and everyone elses.
montyhedge
10/11/2009
15:00
MoneyWeek viewpoint:- Apologies if this was posted earlier by someone else.

Market hopes are stretched far beyond reality

The Cadbury / Kraft bid saga shows just how far market hopes are stretched beyond reality.

Right up to yesterday's bid deadline, analysts and investors were clearly expecting Kraft to pull some rabbit out of the hat that would give them an excuse to drive the confectioner's share price higher from its already optimistic level of around 760p.

Instead, Kraft came back with an offer that suggested that, frankly, they can take Cadbury or leave it. The bid terms were exactly the same, which – because Kraft's share price has fallen since the original bid was made – meant that the actual per share value had fallen, from the equivalent of 745p to 717p.

Yet, the Cadbury share price is still hovering pretty much exactly where it was yesterday. You can read more about the background to the story, and what we reckon Cadbury shareholders should do now, in my colleague David Stevenson's blog on the topic, here.

What's perhaps more interesting about this bid battle is what it says about the bigger picture and the market's psychology right now. When this deal was first announced, the excitement in the City pages was palpable. This was the return of big deals, a sign that the recovery was on track.

Suddenly, Cadbury was a sleek national treasure, being stalked by this hideous, lumpen, American manufacturer of stringy cheese. Never mind that the confectioner had been trading at less than £6 a share before Kraft made its approach.

Sure, it's easy to uncover a new-found appreciation for something when it looks as though it's going to be taken away from you. And Cadbury's may well be worth a lot more than Kraft is offering, over the long run – which is a good argument for keeping it independent.

The truth: Kraft can't afford to bid much higher

But there's a big difference between what you believe an asset is fundamentally worth, and what someone else is willing to pay for it. And the truth is that Kraft can't really afford to go that much higher.

As Rob Cox points out on Breakingviews.com, Kraft wouldn't have gone through with the formal offer if it wasn't serious about bidding. And there was no reason for Kraft chairman Irene Rosenfeld to up the offer in the absence of any rival bids – this "would have amounted to [Kraft] negotiating against itself". So there may well be a higher bid, or one with a bigger cash component, awaiting Cadbury's shareholders further down the line.

There's also the temptation, once a bid battle kicks off, to get suckered into ego-driven over-paying. When bosses lose out on a deal, they tend to end up with egg on their faces, even if it's the most sensible option.

But practically speaking, there's not much chance of egotistic overpaying in this case. For one thing, the highly value-conscious Warren Buffett is a key Kraft shareholder, and he won't be keen to overbid for Cadbury's. And, as Cox points out, "Kraft can't raise its bid by much without destroying value or losing its investment-grade debt rating."

That's the last thing Kraft wants to do right now, with the global economy in the state it's in. For example, the reason its offer for Cadbury is worth less now, is because Kraft's third-quarter sales were disappointingly weak, sending its share price down. The group also cut its sales forecasts for the year. You don't want to overstretch your balance sheet in that sort of environment.

The City might be betting on the good times coming back, but companies like Kraft which can see how badly the consumer – particularly in the US – is suffering, have to take a more cautious view. That suggests that getting the bid up to even 800p might be a stretch. And persuading Cadbury's investors to accept that may also be tough.

Cadbury's shareholders should take profits now

So as David suggests, if you bought Cadbury's before the bid was launched, taking your profits now might be the safest option. If you have bought it since, hoping for a better deal, you might want to hang on for the next phase of talks. But bear in mind that there's an awful lot of potential downside if the deal falls through. Cadbury's shareholders might be talking up its value right now, but I suspect their new-found affection for the stock will vanish as rapidly as it appeared if no more suitors appear on the horizon.

DYOR /

freemanure2
10/11/2009
10:59
Hi Kumala

The expert 'guy' was right yesterday but not about the price!

I guess we are in for a couple of months attrition before Kraft get to pay in excess of £8

best of luck

ajmace
10/11/2009
09:42
NOT me tony, why, have you ?
K

kumala
10/11/2009
09:25
Has anyone been contacted by a company called The Berkshire Fund (NOT WB's) regarding purchase of Cadbury at a discount ?
tonytravel
10/11/2009
08:48
Looks like a lot of interest is being lost with the sell off this morning.
K

kumala
09/11/2009
20:04
Not impressed at this bid. To be honest, I'd rather Cadbury stayed an independent UK FTSE 100 company. It's one of our best.

There is no way Roger Carr is going to roll over for a poor bid like this. Kraft know that and this is just a first move to make the Cadbury Board look great when they get another £1-2 a share. "Derisory" was absolutely spot on!

Kraft are probably correct in saying this is a £6 share without a bid (30p at a historical P/E of 20).

However, 4/5 years time, you could see this quite easily growing to a £10 share in growing at 10%/annum which should be achievable with their exposure to emerging markets.

I'm quite happy to hold unless £8.50 cash is on the table. Who wants Kraft shares in the UK - I don't! Kraft are a good company, but UK shareholders cannot cost effectively hold US shares.

topvest
09/11/2009
18:33
kraft say cbry is a £6 share without the bid.
We all agree.
I am sure that the reason Unilever ruled itself out was because Cadbury's 5 billion debt was a poison pill and a white knight rolled into one.

i see kraft is trading 1.3% down right now in us.

careful
09/11/2009
18:20
monty, they're setting the hight of the fence, KRAFT will be back with a bit more...and so on..
each side must agree without losing face, thats the rule of the game..you wait see

bobp
09/11/2009
17:23
Ok back to te waiting game......zz zz zz
K

kumala
09/11/2009
17:13
BobP, I think everyone would love to see scenario 2!! It's the only one to make the whole exercise worthwhile.
talon13
09/11/2009
16:49
Just announced Top investors in Cadburys said at least 800p must be paid.
montyhedge
09/11/2009
16:48
Hi Guys, been out and just got back, I was hoping to be in yesterday and didn't buy, but for those still in my humble advice is stay put..
three scenarios.

1. Kraft walk away and CBRY carry on , its a good company, a long term goodie!

2. Another buyer will jump in and a bid war will kick off

3. Kraft will be back.. they had to comply with the 28 day rule, they got time now.

Face it, if it was pants the share price would be in the six quids now, it bounced back up for a reason...

bobp
09/11/2009
15:57
Lots of permitations now on the cards, as i said before at least they did not walk away which would have been dyer for the share price I was hoping to vacate hear to use the proceeds to top up else where, but never mind, there is still light at the end of the tunnel.
K

kumala
09/11/2009
15:47
Now we could see another company come in now Kraft have made a official bid.
montyhedge
09/11/2009
15:46
Is it now impossible for Kraft to walk away from the deal?
tonytravel
09/11/2009
15:41
So what about Kraft, some sneaky buying in the background?
rolobollo
Chat Pages: 73  72  71  70  69  68  67  66  65  64  63  62  Older

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