Update on Kraft and Cadbury's Short Interest

Kraft (KFT) announced its interest in Cadbury (CBY) on Labor Day. Since then, the market has focused on Kraft's ability to deliver on its margin targets if the Cadbury acquisition does not go ahead. Following Cadbury's strong sales figures this week, press comments have suggested that Kraft may need to rethink its offer.

Kraft

Kraft's short base is currently very small, with just 0.5% of the shares outstanding on loan. This represents just 1.4% of the lender supply. The price dropped sharply after the acquisition announcement but it has recovered most of the lost ground over the past two weeks. To download the whole article click here.

Cadbury

Cadbury's strong Q3 sales this week created some doubts around the recent approach from Kraft. The short base is small and has been dropping, and only 5% of the lender supply is currently utilized. To download the whole article click here.