Market Currents

• Tuesday, December 15, 2009

• 07:27 AM Kraft (KFT) stands firm against Cadbury (CBY), questioning its bullish projections as a standalone company, and warning shareholders they'll be "taking a risk" if they rebuff Kraft's offer. "We have heard nothing from Cadbury that surprises us. Cadbury's Defence Document only reinforces our belief that there is a compelling strategic and financial rationale to combining these two companies." 1 Comment

• Monday, December 14, 2009

• 09:07 AM "Cadbury is an exceptional business worth much more than the offer put forward by Kraft," chairman Roger Carr says in Cadbury's (CBY) official response to Kraft's (KFT) £10B bid. "Kraft is trying to buy Cadbury on the cheap to provide much needed growth to their unattractive low-growth conglomerate business model. Don't let Kraft steal your company with its derisory offer." 1 Comment

• Thursday, December 10, 2009

• 11:50 AM British and Irish Cadbury (CBY) workers are launching a campaign to help fend off a hostile takeover bid from Kraft (KFT), warning of job losses and pay cuts along with a giant debt burden for the U.K. confectioner if it goes through; for now, the union isn't focused on a possible competing bid from Hershey (HSY). Comment!

• Wednesday, December 9, 2009

• 05:48 AM EU regulators extend the deadline for their review of Kraft's (KFT) $16.1B bid to buy Cadbury (CBY) to Jan. 6 from Dec. 14 after Kraft offered concessions to ensure the deal is not anticompetitive. Comment!

• Friday, December 4, 2009

• 10:31 AM As anticipated, Kraft (KFT +0.4%) enters its formal offer to acquire Cadbury (CBY -0.1%), ahead of a Monday deadline, while the U.K. candy maker trades above the (unchanged) 714-pence offer price. Meanwhile, U.K.'s business secretary, Peter Mandelson, warns Kraft: "If you think that you can come here and make a fast buck you will find that you face huge opposition from the local population ... and from the British government." 1 Comment
• 08:08 AM Kraft (KFT) plans to launch its £9.8B ($16.4B) hostile bid for Britain's Cadbury (CBY) Friday, one business day ahead of the Monday deadline, sources say. Under U.K. takeover rules, Kraft has until day 46, or the middle of January, to raise its bid, while Cadbury will have until day 14 to publish its defense. Hershey (HSY) is thought to be mulling a $17B bid for Cadbury - an offer the U.K. confectioner has indicated it would prefer. Comment!

• Thursday, December 3, 2009

• 08:09 AM Kraft's selling tactic to Cadbury (CBY) stakeholders: Our shares (KFT) are really worth a lot more. RBC's Edward Aaron sums up the counter-argument: "If they were really worth more, the market would value them higher." 1 Comment

• Wednesday, December 2, 2009

• 11:17 AM With Monday's deadline approaching for Kraft (KFT +0.9%) to submit its offer documents in a $16.2B hostile bid for Cadbury (CBY +0.5%), the conglomerate appears to be sticking to its slow-and-steady plan despite potential pressure from Ferrero or Hershey (HSY +0.9%). "There would be no point in Kraft changing the offer until someone else shows their hand," says an analyst. (recently: I, II) Comment!

• Monday, November 30, 2009

• 11:35 AM Top British union Unite, representing Cadbury (CBY) workers, asks Kraft (KFT) for promises of employment security in case the conglomerate's hostile bid succeeds, fearing "massive job losses." While British unions are weaker than in other European countries, the pressure could add to an uphill battle for Kraft. 1 Comment

• Saturday, November 28, 2009

• 04:34 AM Cadbury (CBY) chief executive Todd Stitzer signals some support for a Hershey (HSY) acquisition bid, saying the companies have similar cultural values - which Cadbury might lose if the British confectioner were acquired by Kraft (KFT). 2 Comments

• Wednesday, November 25, 2009

• 11:47 AM The Hershey Trust (HSY) reaches out to Pennsylvania's attorney general - who has broad power to regulate charitable trusts - likely to smooth political issues that might hinder a potential sole Hershey bid for Cadbury (CBY). Comment!

• Monday, November 23, 2009

• 12:39 PM Even after committing $1.88B to buying part of Sara Lee's (SLE) business, Unilever's (UN +1.6%) still got cash for a shopping spree - as much as €2B ($3B) - and plans to find "bolt-on" acquisitions for growth, CFO Jim Lawrence said. He previously said the company was not looking at Cadbury (CBY). 1 Comment
• 10:49 AM Cadbury (CBY +2.3%) CEO Roger Carr says he would prefer a merger with Hershey (HSY -0.8%) rather than Kraft (KFT +0.7%), but added all bids could fail if they're not sweet enough. Sources say Kraft is considering increasing its bid or offering more cash. 1 Comment

• Sunday, November 22, 2009

• 17:46 PM Not to be left out, Nestle (NSRGY.PK) is thought to be considering a bid for Cadbury (CBY) to challenge Kraft's (KFT) $16.7B hostile offer and a potential counterbid by Hershey (HSY). One analyst says Nestle could "blow Kraft out of the water" if it ops to execute an option to sell its majority stake in Alcon (ACL) to Novartis (NVS) for more than $20B come January. 4 Comments

• Saturday, November 21, 2009

• 08:00 AM Hershey (HSY) may go it alone on a $17B bid for Cadbury (CBY), without potential partner Ferrero. But Hershey is controlled by the Hershey Trust, a charitable group thought to have scuttled deals before. Key boardmembers may be pushing the trust to this change of heart. (previously) 1 Comment

• Friday, November 20, 2009

• 16:12 PM Hershey Trust (HSY) pushing for a $17B bid for Cadbury (CBY) - which would top Kraft's (KFT) $16.7B offer and include more cash. [[CBY]] up 1.4% AH. (WSJ) 1 Comment