Cadbury Schweppes Share Discussion Threads

[indomie] 09/1/2010 14:45

What about a different outcome?

The media are still talking about an outright takeover but I'd have thought it would make more sense for Cadbury and Hersey to come together in a joint holding structure - a bit like Shell in the UK and Royal Dutch in Holland.

The Hershey Trust could then retain control of the US business, whilst both firms could benefit from synergies and enhanced growth opportunities. Hershey wouldn't have to risk taking on huge new debts through a takeover and both would defend their existing mkt positions.....Cadbury is slightly bigger than Hershey, so Hershey could either offer some cash to make the venture 50/50 or Cadbury shareholders could have a larger % of the holding company.

This wouldnt be any white knight proposal, it would be two strong firms coming together to create the number one confectionary firm in the world. Much better than all the other scenarios I've seen debated.

[topvest] 08/1/2010 20:58

I've got shares in Cadbury, but I'd rather they stay independent. Actually, I'd buy some more shares if the price drops right back. Cadbury is a great british company and is better on its own.

Good old Warren Buffet seems to have saved Cadbury from Kraft. I really can't see their bid surviving Mr Buffet, the world's most admired investor, saying they are over-paying in cheap equity. Buffet is right of course. Fot Kraft shareholders issuing loads of shares (at a low price) to buy Cadbury (at a high price) is shareholder value suicide!

Of course, another deal may also be on the cards. We will have to wait and see, but I'd still prefer this great company to stay independent. Lots of growth for shareholders as Cadbury.

[kumala] 07/1/2010 13:20

fingers crossed.

[topicel] 07/1/2010 10:35

Cadbury [lanning TWO responses. Very far from down and out for the count here. Bloomberg reported they are speaking directly to Hershey...

Topicel

[topicel] 06/1/2010 16:33

Not so sure, the buying indicates otherwise at 770p.

Private Equity may fancy a bite of chocolate...

As for me, I'll settle for dividends in the future as growth outlook seems reassuring whichever way this goes from here on in.

Topicel

[careful] 06/1/2010 13:20

pe ratio 35 at todays price, very expensive.
those crazy days of cheap money and overpriced buyouts are over for the time being.

[topicel] 06/1/2010 13:12

Agreed paulbl, can't see around corners either, but some are upcoming I reckon. Lol.

Topicel

[paulbl] 06/1/2010 11:15

I am adding right now as this has a few more twists and turns to come before Jan 19....

[careful] 06/1/2010 10:52

i still think that the 5 billion of debt loaded on to the chocolate business at the time of the restructure will act as a poison pill.
however good the compnany, to hand over more than 10 bn to purchase someone elses overdraft is rash.
warren buffet knows what he is doing.

[topicel] 06/1/2010 09:05

Hershey board divided...we sink or swim as an investment on Capital appreciation depending on what they decide.

As I've said before, Cadbury staying independent this time is only setting it up for a bigger swoop down the line - even up to a year or more away - but it will happen. In the meantime, dividends are probably better than the interest you'd get for your hard earned in a savings account, so be cool.

Topicel

[only who?] 05/1/2010 23:07

So it didn't hit 650p, Monty? What went wrong (or right)?

[careful] 05/1/2010 18:27

what an interesting situation.
more cash and fewer shares from kraft.
and yet kraft shares are up another 3% in us right now.
with the $ collapsing maybe the original offer was better.
maybe no cash and all shares would be better still.
it is what mathematicians call 'non linear'.

[talon13] 05/1/2010 16:22

I got rid of most of my CBRY stock a short while back at 791 and 799, and am just left holding a small amount, so I'm really not bothered now which way this bid turns out.

Monty reckons a bloodbath for the longs, well I say, may it happen soon as I'd be a buyer at under 600, and I could top up my current meagre holding at much nicer prices lol!!

I actually hope Cadbury stays independent now.

[kumala] 05/1/2010 15:44

Grrrrrrrrrrrrrrrrrrr...............

[aimslave] 05/1/2010 14:06

You're the only 1 i think volsung.

[volsung] 05/1/2010 13:52

I'll take that as a no then

[careful] 05/1/2010 13:44

i have been watching this for ages.
sold out at 782 cash a few weeks ago.
a long time holder and admirer looking to get back in.

warren buffet is Krafts biggest holder and urges them not to overpay. He claimed that the original offer was 'full'. he is in the cbry camp also.

my guess is that this time paulson and co will get creamed.(forgive the pun).
the offer will be quickly worth over 800 if craft win at the latest offer price, the US market will love it.

journalists started to believe their own bullsh*t just like the sbry bid a while back.

[volsung] 05/1/2010 13:37

Has anyone here gone out with an Asian ladyboy?

[montyhedge] 05/1/2010 13:34

BLOODBATH COMING FOR LONGS IN CADBURYS.

[montyhedge] 05/1/2010 13:33

Looks like game over Buffett not agreeing with increasing. Another 100p to come off price to 650p.