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’Meddling Mandy lives on
The UK Takeover Panel finally published its proposed changes to the Takeover Code on Tuesday — and perhaps suitably for the post-Kraft era, they’re rather stringent.
Lord Mandelson, the former Business Secretary who inspired them,
A very British scandal
Something approaching scandal was brewing at the venerable Panel on Takeovers and Mergers on Wednesday.
The arbiter of mergers and acquisition activity in the UK announced on Wednesday afternoon that its new director general would not be taking up his position.
Cadbury’s fudge (updated)
Proposals by the Labour Party to put “some grit” into the UK Takeover Code have met with a predictably furious response in the City on Monday morning.
From Financial News:
Some of the City of London’s best-known dealmakers from firms including Goldman Sachs,
Snap news
Breaking pre-market news on Monday,
- Royal Dutch Shell and PetroChina make $3.4bn offer for Arrow Energy – statement.
- Prudential to seek secondary listing on Hong Kong stock exchange – statement.
Meddling Mandy – the details
We mused last week on what suggested reforms the First Secretary of State for Business, Innovation and Skills might have made to the UK’s Takeover Panel.
And now we know, thanks to a speech the The Rt Hon Lord Mandelson has delivered at Mansion House in the City.
Meddling Mandy
This looks ominous.
From the Takeover Panel, via RNS:
In the light of recent commentary and public discussion, and suggestions for consideration from the Secretary of State for Business, Innovation and Skills and others,
A grandee speaks up for Little England
To the Said Business School, Oxford, to hear departing Cadbury chairman Roger Carr talk about hostile takeover bids – a timely address, given the Kraft deal…
Carr, we can report, had clearly topped up on the theobromine ahead of his speech.
Kontrast and Kompare
Preliminary guidance for Kraft’s bond seems to be out.
The below is courtesy of Marc Ostwald at Monument Securities
Just for fun, Ostwald provides details of a new Lithuanian 10-year bond:
Paying for Cadbury
Just a day after its offer for the British chocolatier was declared unconditional, Kraft is looking to refinance the £7.1bn bridge loan it took on to fund the £11.7bn cash-and-scrip bid.
The US food company is planning a “jumbo”
Snap news
Breaking pre-market news on Monday,
-Ferrero confirms does not intend to make an offer for Cadbury – statement.
- Kraft gives more details of its Mix and Match facility, says Cadbury shareholders can elect for 799p cash per shr – statement.
Kradbury – a ‘bad deal’
Remember those conspiracy theories about Warren Buffett being in league with Kraft to drive down the Cadbury share price?
They always seemed somewhat far fetched – and guess what? They were.
Buffett’s threat to vote against the deal was real enough.
Snap news
Breaking pre-market news on Wednesday,
- Cadbury battle ends with midnight handshake – FT, publication of offer.
- IBM Consulting sales fall 2.8 per cent to $4.58bn – statement.
- Address by Mervyn King to the University of Exeter Business Leaders’ Forum – speech.
Cadbury post-mortem
No doubt the board of Cadbury are feeling pretty pleased with themselves right now.
After all, they have just managed to extract a higher offer from Kraft, providing an exit at a 50 per cent premium to the level it was trading at the day before the first offer in September.
Krafty
If you thought Kraft shareholders might be able to derail the company’s new, improved bid for Cadbury think again.
From the Recommended Final Offer for Cadbury, unveiled on Tuesday morning:
The Final Offer does not require the approval of Kraft Foods Shareholders.
Cadbury melts away
Lo and behold, not with a bang but a whimper, do the finalised terms of the Kraft-Cadbury deal come on Tuesday morning, right, as Pestowire predicted, at 9:04am London time.
From the statement:
*
Snap news
Breaking pre-market news on Friday,
- Hershey said to be accelerating efforts to prepare Cadbury offer – Bloomberg.
- Man Group funds under management suffer $1.2bn negative investment movement in Q4 – statement.
Will Hersbury happen? (Updated)
Hershey is preparing a counter-bid to Kraft’s hostile £10.4bn offer for Cadbury, according to people familiar with the matter. The US confectioner has authorised a bid for the UK chocolate maker and a formal offer could be made before the January 23 deadline,
Hersbury?
Six days to go to Kraft’s deadline for raising its bid for Cadbury, and suddenly this pops up on the Associated Press wire:
The Hershey Co. continues to work on a bid to acquire British candy maker Cadbury PLC without the help of Italian candymaker Ferrero International.
Snap news
Breaking pre-market news on Tuesday,
- Virgin Media to offer £500m equivalent of Senior Secured Notes due 2018 – statement.
- Cadbury publishes further reasons to reject Kraft’s offer – statement.
Buffett/Kraft conspiracy theories
7.5p, or 1 per cent.
That’s the gap between the Cadbury share price and the value of Kraft’s £10.4bn bid on Wednesday morning.
Which will no doubt please those conspiracy theorists (both in the media and the stockmarket) who believe Warren Buffett is in league with Kraft’s management to secure Cadbury at a knockdown price.
CDS report: Kraft’s takeover ambitions hit the buffers
Gavan Nolan of Markit wrote this CDS report
Credit outperformed equity today as European credit indices threatened to break through key resistance levels. The Markit iTraxx Europe tightened by around 1.5bp to hover around the 70bp level,
Cadbury gets creamed by Buffett…
… who also delivers an almighty slapdown to Kraft.
In early afternoon trading on Tuesday, shares in the UK confectioner were hit hard – falling over 4% to 770p
The reason? Warren Buffett, who has thrown a rather big spanner in the works.
CDS report: Nestle sale triggers Cadbury speculation
Markit’s Gavan Nolan wrote this CDS report
It was business as usual today as the credit and equity markets resumed their rally from last year. The Markit iTraxx Europe index closed at 71.5bp, over 2bp tighter than the year-end mark and the tightest level since May 2008 (excluding roll effects).
Snap news
Breaking pre-market news on Monday,
- Kraft looks for shareholder approval to issue shares for Cadbury bid – statement.
- London Stock Exchange announces acquisition of Turquoise – statement.
- Nigerian oil minister says Shell has not informed Nigeria of any plans to sell oil fields – Reuters.
Snap news
Breaking pre-market news on Tuesday,
- Deutsche Bank says needs moderate capital market refinancing in 2010, overall loan loss provisions expected to decline in 2010 – Reuters
- “We have heard nothing that surprises us”:
Hershey nears Cadbury decision
Hershey and the trust that controls it are near a final decision to bid on rival candy maker Cadbury, reports the WSJ. Hershey is wary of sacrificing its investment-grade credit rating should it buy Cadbury,
Snap news
Breaking pre-market news on Monday,
- Cadbury to give formal response to Kraft’s offer on December 14 — statement.
- Shanks Group says it’s received “highly preliminary approach” from a PE firm — statement.
CDS report: The battle for Cadbury itensifies
Gavan Nolan of Markit wrote this CDS report
European credit indices rallied today, matching a strong performance in the equity markets and recovering some ground from last week. The Markit iTraxx Europe index closed at 84bp,
Cadbury encourages friendly approach from Hershey
Cadbury is expecting a “white knight” bid from Hershey if the US confectioner can arrange the financing for a takeover offer. The British firm, fending off an approach from Kraft, sees commercial logic in an alternative deal with Hershey,
Cadbury-Hershey merger: the Carnival solution
The hurdles to a Hershey-Cadbury tie-up are by now well aired.
Hershey has a smaller market cap than Cadbury, would need to take on crippling amounts of debt to finance a deal, and the Hershey Charitable Trust would be loath to relinquish control in any new company.