Cadbury Schweppes Share Discussion Threads

[spob] 09/11/2009 07:56

How much beauty sleep does Irene Rosenfeld need

Come on Irene

[bobp] 09/11/2009 07:38

morning you lucky sods, I'll be watching with envy!

[joe151] 09/11/2009 07:16

cocho here we go up up and away

[joe151] 09/11/2009 07:16

cocho here we go up up and away

[joe151] 09/11/2009 07:16

cocho here we go up up and away

[spob] 09/11/2009 03:52

Kraft to table new £12bn bid for Cadbury


Mark Foxwell and Sarah Bridge, Financial Mail
7 November 2009, 8:44pm

Kraft, the American food giant, is on Monday expected to table a takeover bid for Cadbury, valuing the British chocolate maker at about £12bn.

Chicago-based Kraft, whose brands include Oreo Cookies, Toblerone chocolate and Dairylea cheese, must make its offer before 5pm UK time to meet the Takeover Panel's deadline.
Disappointing sales figures from Kraft last week led some to suggest it might walk away, but an insider told Financial Mail: 'Unless something catastrophic happens, a bid will be made.' If not, Kraft will have to wait at least six months before it can make a fresh approach.

Cadbury's board, headed by chief executive Todd Stitzer, rejected Kraft's original offer of £10.2bn, or 745p a share, in September, saying it undervalued the business.

The new offer is expected to be above 800p a share and is likely to include a greater cash element to appeal to those British shareholders who do not like American stock.

Kraft, led by Irene Rosenfeld, has lined up finance from a number of banks, headed by Citigroup, Deutsche Bank and HSBC with the involvement of a further six, including Barclays Capital and Royal Bank of Scotland.

If Cadbury decides to recommend the deal to its shareholders it would create a global giant in snacks, confectionery and ready meals with revenues of more than £30.5bn.

[joe151] 08/11/2009 21:10

we should go up high tomorrow

[joe151] 08/11/2009 21:10

we should go up high tomorrow

[kumala] 08/11/2009 18:54

rolobollo:
You might just be right, anything can hapen, and i for one will be conected to my brokers wesite with my finger on the button ready to move in an instant if the time is "right"
K

[rolobollo] 08/11/2009 18:43

They haven`t the readies for a bid more than 10% of the closing price Friday- if there is a spike of more -grab it and run!

[kumala] 08/11/2009 18:16

By Lisa Buckingham, Mail on Sunday Financial Editor
Last updated at 10:36 PM on 07th November 2009

When the US food giant Kraft launches its (probably hostile) takeover bid tomorrow, Cadbury boss Todd Stitzer must ensure he does not become the commercial world's David Cameron - someone who might win only through the opposition's weakness rather than the power of his own argument.

Third-quarter results from Kraft last week pushed its share price lower, dragging down the price of the British chocolate maker as any takeover offer will be structured in shares and cash.

Some analysts have been suggesting a bid price of 900p or more compared with the 745p sighting shot from Kraft chief executive Irene Rosenfeld, who has helped Cadbury's price lower by stressing that she is not in a strategic bind and has no reason to overpay.

The above article is from the mail on line, I like two parts of this article, the first line "When the US food giant Kraft launches its (probably hostile) takeover bid" and the mention of "a bid price of 900p or more" £9 or more would make a lot of people very very happy.

;)K

[kumala] 08/11/2009 18:06

Monty and Talon:
What are your thoughts at this stage in the game, ?
K

[kumala] 08/11/2009 18:05

well, Im not counting my chickens yet BobP, Ive been hear for the last 5-6 weeks bought in near the peak, but there are a lot of holders who have been hear a whole lot longer and I presume bought at much favorable levels. The deal is not done yet and anything might hapen, Im hoping like others we will see an offer higher than the £8.50, but there are hints of a price at around £8.20, on the other hand it may all fall apart.

If it does all come together it wilol make a change of me getting something right for a change. LOL.

Take care
K

[bobp] 08/11/2009 15:59

Well done you lot, wish I'd got in there now..hestitated! Duh!

[talon13] 08/11/2009 13:44

The BS is flowing thick and fast now...........


CHICAGO (AP) - The clock is ticking on a Monday deadline for Kraft Foods Inc. to make a formal offer for British candy maker Cadbury PLC.

Kraft, which makes Oreo cookies, Nabisco crackers and its namesake cheese, on Tuesday told investors to keep an eye on its filings - a clue that a bid may be right around the corner.

Monday is the last day permitted for Kraft to "put up or shut up," according to U.K. regulators. If Kraft doesn't make a formal bid by then, it must walk away for six months.

Cadbury spurned Kraft's cash-and-stock offer in September. It was then worth $16.7 billion. It would now be worth less because Kraft's shares have fallen in value.

Kraft previously proposed paying 300 pence in cash and 0.2589 new Kraft shares per Cadbury share, valuing Cadbury shares at 745 pence. That's below Cadbury's closing stock price of 758 pence on Friday.

Kraft first made its offer public in September, but its original proposal was made and rejected earlier in the summer. Since making the offer on Sept. 7, Kraft's shares have declined 3.8 percent, reducing the value of the stock portion of its initial offer.

Since no other competitors have emerged to bid on Cadbury, it's unlikely that Kraft right now will offer a high price, said Standard & Poor's equity analyst Tom Graves.

"I think Kraft will make an offer for Cadbury to keep the door open and follow things up with a higher offer later on," Graves said.

Some analysts speculated that The Hershey Co. could team up with Swiss food company Nestle SA to make a joint competitive offer for Cadbury, but no proposal has emerged.

Stifel Nicolaus & Co. analyst Christopher Growe expects Kraft to bid before the deadline but said in an investors note it needs to be higher to win over Cadbury shareholders, ranging from 800 pence to 850 pence a share.

Cadbury said that Kraft's offer wasn't high enough and didn't make strategic sense, but Kraft sees the deal as a chance to save costs and boost market share in both the lucrative candy business and in emerging markets.

If both companies combine, it would create a company that generates at least $50 billion in total revenue. Kraft is the largest food company in the U.S. and No. 2 worldwide to Nestle, and Nestle would still be the largest even if Kraft adds Cadbury.

Kraft reported a lower quarterly profit earlier this week because of a big one-time gain a year ago and a 6 percent decline in revenue but still lifted its yearly earnings outlook.

Kraft, which is based in Northfield, Ill., also makes Maxwell House coffee and Oscar Mayer meats, while Cadbury makes Dentyne gum in addition to chocolate.

[montyhedge] 08/11/2009 11:10

Should be 875p not 805p, but tomorrow is the first parting shot.

[qantas] 08/11/2009 09:59

Kraft to table £12bn bid for Cadbury tomorrow

[qantas] 07/11/2009 17:56

From The Times November 7, 2009

Tempus: Cadbury takeover could give us a taste of mergers to come
Muted economic growth has made corporate sales and profits difficult - merger and acquisition provides an alternativeNick Hasell: Tempus

Recommend?
In little more than 48 hours, followers of Cadbury will find out whether the biggest proposed cross-border takeover in Britain for nearly three years will proceed. But whether or not America's Kraft follows through on its informal bid for the FTSE 100 confectionery group, the wider logic behind September's cash-and-shares approach holds good. At a time when muted economic growth has made underlying advances in corporate sales and profits difficult to achieve, merger and acquisition activity provides a powerful alternative for boosting returns.

Deutsche Bank concurs. It cites the ability to spur growth through takeovers as one of the key reasons why M&A in Europe is set to rebound from recent lows.

Just how low is evident from the chart below. The German bank observes that, over the past ten years, the level of takeover activity in Europe has averaged 1.1 per cent of its combined stock market value per quarter. However, in the three months to September 30, that tally fell to only 0.6 per cent. Deutsche calculates that, should activity levels return to their long-term average, total European M&A could run to €300 billion next year. If it rebounds to the level of previous takeover booms - notably the period between late 1998 and early 2000, when it averaged 2.3 per cent of total listed equity - the value of public market bids and deals could touch nearly €600 billion.

If that appears fanciful, Deutsche advances additional factors that should favour M&A. First, the capital markets are open once again: issuance of equity, bond and hybrid financial instruments is running at high levels, with only the bank lending market remaining subdued. However, although bank loans are commonly used to provide bridge finance in cash-backed takeover deals, Deutsche believes acquirers could side-step that obstacle by opting for all-share deals instead.

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And that leads to its second consideration. Two successive quarters of rising stock markets have made paper-based deals relatively more attractive to target shareholders, who may want to retain exposure to the assets they are selling. Further, history suggests that upswings in M&A activity tend to lag stock indices by about six months: the product of a self-perpetuating phenomenon whereby a more bullish view of stockmarkets underpins the willingness of boards to pursue M&A.

Finally, Deutsche believes that recent currency moves will prove persuasive. Just as a weak sterling relative to the euro and US dollar has stimulated interest in the UK property market from foreign buyers, so too should an under-strength pound draw the attention of overseas corporate predators. That helps to explain why, of the 30 companies from across Europe that Deutsche identifies as possible bid targets, 18 are drawn from these shores.

Who are they? With Resolution's offer for Friends Provident now in its closing stages, the life insurance sector seems a reasonable place to start. Deutsche picks out Legal & General - which it says enjoys some strong franchises, but lacks the diversification to utilise its capital base efficiently - and Standard Life, which is sitting on more than £1 billion of excess capital and has tidied up its portfolio with last week's £226 million sale of its banking division to Barclays.

The cash-generative strengths of industrial companies indicates that bid activity could pick up sooner rather than later, according to Deutsche. It likes Invensys, the automation and controls group, where the funding of its pension scheme is likely to be less of a poison pill than in the past, and Smiths Group, the engineering conglomerate with a strong position in security detection equipment and mechanical seals. Meggitt is favoured because it is smaller than commercial aerospace rivals, and so vulnerable to the efforts of Airbus and Boeing to encourage consolidation among their suppliers. The same rationale, albeit in defence, applies at Ultra Electronics. In healthcare, Smith & Nephew, the maker of orthopaedic devices, promises strong long-term sales growth, but, again, is viewed as sub-scale relative to its peers.

Aegis Group, the media agency where France's Vincent Bolloré has a 29 per cent stake, is an obvious choice. So, too, Informa, the publisher; Michael Page International, the recruitment agency (both have attracted bid interest in the recent past); and Cable & Wireless, which this week dusted off its demerger plan. Burberry Group is seen as a logical target for one of the larger luxury goods conglomerates. In a less glamorous retail niche, Deutsche pinpoints Kesa Electricals, the owner of Comet, which it touts as a break-up candidate. It also believes Game Group is on the shopping list of Gamestop, its US rival. In technology, Logica is seen as susceptible in lacking global scale and an offshore presence. Misys, the software house, has strong recurring revenues and a customer base that gives scope for cross-selling.

That leaves the two clear heavyweights on the list. Centrica, the £12 billion owner of British Gas, and Scottish & Southern Energy, the Perth-based utility. They sit in a sector short of potential bid targets, but Deutsche thinks either could fall to overseas buyers without significant political interference.

So, what am I bid?

[kumala] 07/11/2009 14:32

Cheers C. W. thought i was loosing the plot.
Thanks
K ;)

[curly wurly] 07/11/2009 14:15

KUMALA - 7 Nov'09 - 13:24 - 534 of 535

ADVFN are repeating Fridays Data. They do that sometimes.

CW
:o)

[kumala] 07/11/2009 13:37

Has Kraft got the stomach to wrap up Cadbury deal?
By Rupert Steiner

Even at this late hour the Kraft team is deliberating whether to plough ahead with its deal.

It is likely to leave it until the last minute - the Takeover Panel issued a Monday deadline - to make a final decision.

If she heeds Buffett's advice and pitches a low-ball offer, she triggers what some believe will be a £56million arrangement fee to the banks who lined up her bid finance. But this would have a slim chance of succeeding.
A formal bid would also trigger a fee for Cadbury's advisers, which City experts suggest could be around £12.5million.
However, if Rosenfeld gambles on a more generous offer with a large dollop of cash to satisfy the demands of the reticent UK investor base, she risks a backlash from her own shareholders.
Potential Cadbury suitors Hershey and Nestle will be watching keenly from the sidelines, but so far they have kept the counsel on the prospect of a counterbid.
Walking away from the Cadbury deal might be humiliating, but it could save the company a lot of money and heartache

FULL ARTICLE AT:
Read more:

[kumala] 07/11/2009 13:17

PS: mmmm Yea £8.90 would be good.
K