Cadbury Schweppes Share Discussion Threads

[inv] 23/11/2009 04:24

Nestle will make a knockout bid later this week at around 875p cash. They will not want a protracted battle and they have the cash

[eurochamps5times] 22/11/2009 10:39

Nestle are now getting involved. This is starting to remind me of the RBS/Barclays battle over ABN Amro and we all know what happened there! In situations such as this, the price can be forced up beyond true value. Nestle havnt previously expressed any interest in Cadbury but they see their rivals make their move and suddenly theyre interested. How often does an investment as sound as Cadbury present itself? Not very often, which explains the number of parties getting involved. The next few weeks for Cadbury shareholders could be very interesting! Although, I still dont see any upside on Monday morning.

[careful] 21/11/2009 15:56

if cadbury shareholders accepted the current bid
kraft shareholders would love it and kraft shares would increase by about 20% over the next few months.
this wouild make the bid worth well over 800p.

[eurochamps5times] 21/11/2009 15:46

Apologies, Ive written that as though the offer is concrete whereas at the moment, it is still only a rumour apparently.

[eurochamps5times] 21/11/2009 15:44

What do you think this does to the share price for Mondays open? Which of the following is right?!!!

1. Hersheys offer is simply the 2nd stage of the whole affair, showing that rivals will not let the Kraft bid go unchallenged, suggesting that there is a lot of room left for a bidding war. Mondays opening price: Up.

2. At 730p per share, the offer isnt good enough to push the share price higher from the closing price of 800p on Friday but there is no reason to suggest a lower open on Monday as a new bidder enters the fray. Mondays opening price: Unchanged.

3. The offer shows that Krafts offer was reasonable and there is no reason to suggest that any offer will ever reach even the 800p per share mark. Mondays opening share price: Down.

I think 2 is the most likely outcome but I fear it may be 3.

[careful] 21/11/2009 10:48

£10 billion all cash is about 730p.
lower than todays share price.
there cannot be much left (if any) in this bid.
cadbury were loaded with too much debt (5 billion) at the time of the split with the drinks division.

a great company, but you purchase their huge overdraft as well.

[eurochamps5times] 21/11/2009 10:36

Hershey rumoured to be ready to bid $17bn. Im long 10000 shares over the weekend hoping for a higher offer but its hardly a great offer! It wouldnt even move the share price. From the BBC:

US chocolate maker Hershey is considering launching a solo bid of at least $17bn (£10bn) for British firm Cadbury, according to reports.

Under pressure from its charitable trust, Hershey has lined up funding from Bank of America and JP Morgan, the Wall Street Journal reported on Friday.

But the US company is still also considering a joint bid with Italy's Ferrero, the paper said.

Cadbury has already rejected a £9.8bn offer from food firm Kraft.

[kumala] 20/11/2009 15:33

didnt know what to do, choices choices, have now used my spare funds to by another ftse350 company, hope to make a profit and get out over the next few days to top up hear in time before the hopefully excelerating share price
K

[tinker] 20/11/2009 11:41

careful

thanks for the advice but time will tell and I'm staying in.

[kumala] 20/11/2009 09:11

C'Mon baby.

[kumala] 20/11/2009 08:58

on the move,,,,,,,,,,,
will we break £8 today ?
K

[bnparibas] 20/11/2009 08:51

here we go!!!!!!!!!!!!!

[kumala] 19/11/2009 16:34

SP held up well today considering wider market.
K

[careful] 19/11/2009 16:06

tinker, dont listen to them.
you should have taken 800p cash, not top up.
if the market weakens you will regret.

[kumala] 19/11/2009 10:40

Tinker: Sounds like you'v made a shrewd move, and gona make a nice profit when were all finished. good onya bud. Fingers crossed now for £8.50 AND B E Y O N D

Regards
K ;)

[tinker] 19/11/2009 09:50

Kumala:

thanks for that. I bought the bulk of mine at 540p in April and have topped up at 800p. I've got a stop a 750p and would probably get out at around 850p on the upside. Bit round numberish I know.

[kumala] 18/11/2009 18:47

Tinker:
Depends on a few factors, not least how the share price is reacting at the time, I have funds available to top up my holding at present and now wish i had done so when the price was circa £7.60, but I dont have a crystal ball and my decision was not to buy at the time coz the price could have soon colapsed towards the £7 bracket and maybe further, i was not prepared to risk more cash at that time. I am watching as closely as possible and ready to make one of three move's that is apropropriate to that particular time frame and situation, whatever the move, the intention is to capitalize as much as poss from the situation without raising the risk factor, when the share price had droped through £7.70 I would have normaly pulled out but my gut feeling and the stabalizing of the share price meant I stayed in. (I came realy close to selling out at a loss, so much so I had the stock on my brokers screen showing a sell price and my cursor hovering over the sell button)

So hear I am waiting, watching, and ready to make a move when the time is right.

My take at the moment is to possibly top up now, being as another suiter is pondering the cause, and signs are that a higher bid will develop either from Kraft or the Hershey camp, plus the S P has been on the rise for a number of days and chances are it might drift higher, maybe to as much as circa £8.25 before we hear anything else, so might be a good time to top up and then take some profit at that point, but hey, I cant read the future!

DYOR as usuel.
Good luck buddy.
K :)

[eurochamps5times] 18/11/2009 11:38

Ferrero in preliminary stages of evaluating its options regarding cadbury

[tinker] 18/11/2009 11:31

Spob - not this time

Hershey and Ferrero provide some fine dining for Cadbury's hedge funds
Hershey and Ferrero are considering a joint bid for Daily Milk maker Cadbury that would trump Kraft and put a smile on the faces of the hedge funds, writes James Quinn.

Published: 6:30AM GMT 18 Nov 2009

The Ambassador of the famed 1990s television advert would be proud. After a two-month long 'reception' at which Kraft's Irene Rosenfeld has attempted – and failed – to woo Cadbury's chairman Roger Carr, in walks Hershey's David West flanked by brothers Pietro and Giovanni Ferrero.

It'll be hard for Carr to ignore the attentions of this newcomer - assuming they amount to anything material. That said a rival bid from Hershey and Ferrero for Cadbury is a compelling idea and will cheer up all those hedge funds which have bought into Cadbury in recent days in anticipation of a rival coming in for Cadbury and knocking out the rather soft-centred offer being made by Kraft.


Related Articles
Bankers the big winners in Kraft's tilt for Cadbury
Cadbury: the chocolate maker with its heart in Birmingham But a Hershey/Ferrero tie up still sounds miles away. They are bound to have looked at it but news of their interest will do little more than help support Cadbury's share price, allowing some hedge funds of a more nervous disposition to sell out, and make it that bit harder for Kraft to succeed.

The market accepts the rationale that Cadbury is a piece in the consolidating food industry but it also accepts it is not just any piece. It's a rarity and will be priced as such.

Until someone can fund a bid that recognises the scarcity value of Cadbury's assets and its standalone, independent nature which makes it such a tempting but almost inaccessible fruit, Cadbury's future remains as an asset apart.

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[spob] 18/11/2009 11:30

Ferrero notes the recent press speculation regarding a potential offer for Cadbury. Ferrero confirms it is in the preliminary stages of evaluating its options in respect of Cadbury.

There can be no certainty that any proposal relating to Cadbury will ultimately be forthcoming.

[spob] 18/11/2009 11:20

slow tinker

[tinker] 18/11/2009 11:20

spob

Your faster off the mark. I'm impressed :)

[tinker] 18/11/2009 11:19

Just released

Statement re. Press Comment (Cadbury Schweppes)





TIDMCBRY

RNS Number : 6939C
Hershey Company (The)
18 November 2009

The Hershey Company


NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN, INTO OR
FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE
RELEVANT LAWS OF THAT JURISDICTION


18 November 2009
STATEMENT REGARDING CADBURY PLC


The Hershey Company ("Hershey") notes the recent press speculation regarding a
potential offer for Cadbury. Hershey confirms that it is reviewing its options
and at this stage there can be no assurance that any proposal or offer from
Hershey will be forthcoming. A further announcement will be made in due course
if appropriate.

[tinker] 18/11/2009 11:17

Kumala

But if it reaches 850, will you stay in?