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’Sweet deals in European bank deleveraging
What links Hershey to the eurozone debt crisis? Well, aside from making a product that cracks under pressure, the confectioner has recently renewed a syndicated lending deal that Nomura’s analysts say augurs further European bank deleveraging.
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.
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,
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.
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,
Hershey, Ferrero flag interest in Cadbury
Hershey and Ferrero on Wednesday revealed that they were weighing up whether to enter the bid battle for Cadbury, the rival UK confectionery company that is fighting off a £9.9bn hostile offer from Kraft Foods of the US.
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,
Kradbury: What the CDS market thinks
Below is a chart from Bloomberg showing how the credit default swap market has reacted to Kraft’s proposed $16bn cash and stock offer for Cadburys.
The sharp jump in Kraft’s 5-year CDS spread is
Cadbury ‘could fetch’ $21bn, analysts
Cadbury, the confectioner that rejected Kraft Foods’ $16.7bn bid on Monday, may attract suitors ranging from Nestle to Hershey and sell for as much as $21bn, according to analysts, reports Bloomberg. Shares in UK-based Cadbury surged past the offer price after it spurned Kraft’s bid,
Kradbury: More hot chocolate
Cadbury shares burst through the 800p level this morning, with much chatter in the market over whether Nestle could launch a counterbid.
The main hitch would be that a combined Cadbury-Nestle would hold close to half of the UK chocolate market – something unlikely to get past the Office of Fair Trading and then the Competition Commission.
Cadbury wispas
Shares in Cadbury are trading through the terms of Kraft’s hostile approach on Monday morning, as the market bets on an increased offer or a counter bid.
Kraft is offering 745p in a mixture of cash and stock for Cadbury,
Hershey Trust triggers board changes
The charitable trust that controls Hershey triggered a sweeping change of guard on the US confectioner’s board on Sunday, as it replaced eight directors who resigned and reiterated its displeasure over the company’s recent performance.
Cadbury chief has taste for Hershey deal
Todd Stitzer, chief executive of Cadbury Schweppes, said a merger with Hershey would make commercial, strategic and financial sense for the UK confectionery company, which is preparing to split itself in half.