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BigRandyG

BigRandyG
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  • Is It Time To Purchase High Yielding Kraft? [View article]
    I am willing to bet Kraft will be bought out by a larger company within the next 2-3 years. Irene R broke up the company into Mondelez & Kraft to enhance return for stock holders. Mondelez will also become part of another larger company. Keeping my Kraft shares for the long term as well as the dividend.
    Feb 10 08:31 PM | Likes Like |Link to Comment
  • Jefferies' Thilo Wrede warns investors not to get too excited about a potential Pepsi (PEP +0.7%) for Mondelez (MDLZ +1.1%) deal, despite pressure from Nelson Peltz. Although such a move might look accretive, appearances can be deceiving, and Wrede doesn't think such the proposal is consistent with either firm's plans. [View news story]
    The fit with PEPSICO is just the snack business. Frito's down the street, (convenience store), with same driver/salesman is booming. What is missing are the key Nabisco brands. NABISCO could never make this work. Secondly, NABISCO's DSD business, (1 truck going to many stores with different sales reps merchandising), for supermarkets is perfect for Frito Lay. This would eliminate many small unions that Frito dislikes and enabled them to work with larger but fewer unions across the country. Nabisco has many large warehouses across the country and Frito products could easily fit in them to be shipped out. There are many synergies between the two companies which would provide significant cost savings. Irene needed to sell off the Pizza business so she could buy pass Warren Buffet to split from Kraft. Nabisco was a cash cow for Kraft. I believe there are plans being discussed to sell off many of the MDLZ brands especially the candy/gum portion as they would warrant a good price. Remember, Irene came from Frito Lay.
    Jul 20 10:15 AM | Likes Like |Link to Comment
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