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’Cadbury chews over dual-listing idea
A solution to facilitate a Cadbury-Hershey merger and repel Kraft’s $16.6bn hostile bid for the UK confectioner has been outlined in a letter to Cadbury CEO Todd Stitzer from the special situations team at brokerage GFI,
Hershey CDS update: Thar she blows (wider)
Hershey’s market capitalisation: $8.6bn
The amount of debt HSY needs to buy Cadbury: $9bn
Jump in HSY 5-year CDS price move after HSY confirmed its interest: 33 per cent
A pretty chart of Hershey’s equity versus 5-year CDS,
CDS report: US data dent sentiment
Gavan Nolan of Markit wrote this CDS report
European credit indices tightened slightly today, a creditable performance given the volatility in equity markets. The Markit iTraxx Europe index was about 1bp tighter at 82bp,
Hershey-Cadbury data points du jour
So, Hershey has entered the fray.
From RNS on Wednesday:
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.
Hershey, Ferrero plot Cadbury bid
US chocolate giant Hershey is considering launching a bid for Cadbury – possibly in partnership with Italy’s Ferrero – that could help the UK confectioner fend off a hostile takeover by Kraft Foods,
Kinder Surprise for Kraft?
Ambassador, you are really spoiling us with these bid stories.
Various European press reports of the possibility of a Kraft-melting Ferrero-Cadbury tie-up have set chins a wagging in London on Tuesday morning.
Hedge funds back Kraft
The growing share of Cadbury held by hedge funds betting that Kraft will raise its $16.2bn (£9.8bn) offer for the UK confectioner is increasing the likelihood that Kraft’s hostile bid will succeed, say brokers.
Hedge funds bite into Cadbury
Paulson & Co, the New York hedge fund run by John Paulson, has disclosed a 2.08% stake in Cadbury following Kraft’s £9.8bn ($16.4bn) hostile bid this week, signalling growing hedge fund interest in the UK confectionery group following Kraft’s hostile bid.
Paulson takes another bite of Cadbury
We all know revered hedge fund manager John Paulson has been buying gold this year, but he also appears to have something of a sweet tooth, as this regulatory disclosure released on Tuesday afternoon shows:
Cadbury rounds on hostile Kraft bid
Kraft on Monday left open the door to increasing its hostile £9.8bn offer for Cadbury after the UK confectionery group rejected its formal bid, launched Monday, describing the US food group’s offer as “derisory” after it did not alter the terms of its initial approach in September.
No change in Kraft terms for Cadbury (UPDATED)
As widely expected, Kraft has launched its hostile bid for Cadbury, the UK confectioner. And there’s not even a sprinkle of extra paper:
In fact, the statement reads as though Kraft is simply going through the motions:
Cadbury braces for hostile bid
The board of Cadbury, the UK food group, is preparing to meet on Monday amid expectations that Kraft will go hostile with its takeover offer. The US group is expected to stick close to the terms of its original £10.2bn ($16.9bn) offer and will either formalise its original cash-and-shares proposal,
Snap news
Breaking pre-market news on Friday,
- China tells banks to conduct quarterly stress tests — Reuters.
- Top Cadbury investor would consider 820p bid — Reuters.
- Balfour Beatty receives acceptances for 97 per cent of shares in rights issue — statement.
Peltz adds twist to Cadbury battle
A wild card is set to be thrown into the battle by Kraft to acquire UK confectionery group Cadbury with the expiry on Friday of an agreement by activist shareholder Nelson Peltz to refrain from publicly criticising the US food group.
Snap news
Breaking pre-market news on Wednesday,
- Cadbury reports “excellent” third quarter results ahead of Kraft put up or shut up deadline – statement.
- BAA announces sale of Gatwick airport to an entity controlled by Global Infrastructure Partners for £1.51bn – statement.
Unilever to bid for Cadbury?
No this isn’t RAW market info but some fantasy M&A from Panmure Gordon.
Analysts Graham Jones thinks Unilever should seriously consider offering 850p a share for Cadbury as it would be earnings enhancing and add meaningful exposure to what is already one of the best emerging operations in the consumers goods industry.
CDS report: Ireland, Romania move wider
Markit’s Gavan Nolan wrote this CDS report
European credit spreads continued to widen as the market reacted negatively to yet more disappointing economic data. The Markit iTraxx Europe index closed at 92.26,
Kraft set to go ‘hostile’ on Cadbury
Kraft Foods is poised to launch a hostile bid for Cadbury valuing the UK confectionery business at around £11bn ($17.4bn), the Guardian reports on Monday, following a report in its Sunday sister paper The Observer. City sources say Kraft could bid 800p a share,
Reject opportunistic Cadbury bid, says FT Alphaville
Summary: Cadbury is a great British business, with a marvelous Anglo-African heritage, superb financial prospects and a sparkling management team. In any case, its takeover by Kraft Foods Inc would almost certainly be against both the UK national interest and the common consumer good,
Did he really say that? Part III
The row about what Cadbury CEO Todd Stitzer did or did not say at that Bank of America Merrill Lynch conference earlier this week is turning increasingly nasty.
Here’s the latest from Bloomberg:
Cadbury Plc contacted the U.K.
Stitzer under fire for Kraft remarks
The UK’s Takeover Panel is examining comments by Cadbury’s chief executive to investors on Wednesday that referred to potential takeover valuations. The panel is concerned that Todd Stitzer’s comments have created uncertainty among investors.
Stitzer ‘sees sense’ of Cadbury takeover
Todd Stitzer, chief executive of Cadbury, has appeared to concede that a combination with Kraft makes “strategic sense”. Bank of America/Merrill Lynch revealed that Stitzer told a conference it organised that Kraft was unlikely to walk away from its $16.8bn bid,
Did he really say that? Part II
Earlier on Wednesday, FT Alphaville noted an intriguing series of Reuters headlines, which suggested Cadbury chief executive Todd Stitzer may have revealed more than he intended regarding Kraft’s approach to the British confectioner.
Did he really say that?
There are very strict rules governing what you can and can’t say during an offer period in the UK, so we were intrigued to see these flashes appear on Wednesday morning.
All the more so because the Bank of America Merrill Lynch conference that Todd Stitzer has been speaking at is supposed to be off limits to the press and all the investor meetings are private one-on-one affairs.
Cadbury tries to force Kraft’s hand
Cadbury has approached the UK Takeover Panel to ask Kraft to either make a formal takeover proposal or walk away for six months on its unsolicited £10.2bn takeover offer made three weeks ago. Kraft’s offer was initally valued at 745p per Cadbury share.
Cadbury raises pressure on Kraft
Cadbury’s chief executive Todd Stitzer delivered a bullish assessment of the UK confectioner’s business strategy to investors on Wednesday, emphasising its growth prospects in emerging markets as it resists Kraft’s £10.2bn takeover approach.
Snap news
Breaking pre-market news on Wednesday,
- UK Coal to raise £100m through share placing and open offer – statement.
- Weir Group says Keith Cochrane to succeed Mark Selway as chief executive – statement.
Even more hot chocolate
The battle for Kradbury is hotting up.
Over the weekend, the confectioner’s chairman Roger Carr said the prospect of being absorbed by a “low growth, conglomerate business” was an “unappealing” and “unattractive prospect.”
Snap news
Breaking pre-market news on Monday,
- Swedbank sets rights issue subscription price at SKr39 per share – statement.
- Cadbury says absorption into Kraft’s “low growth conglomerate” model is unappealing – statement.
Cadbury attacks Kraft’s strategy
Cadbury has bolstered its defence against a proposed takeover by Kraft, the US foodmaker, by releasing a letter describing the US group as a “low-growth conglomerate”. Cadbury at the weekend released the letter from its chairman,