CADBURY DEAL WITH KRAFT

Kraft foods agrees a deal to buy Cadbury on Tuesday

(19.01.2010) for around 11.9 billion Pounds ($ 19.55 billion) by
increasing its overall bid and offering more cash in an offer that
was Recommended by Cadbury’s board.

The following are the key events in Kraft’s takeover battle

for Cadbury:

Aug28, 2009:- Kraft’s chairman and CEO Irene Rosenreld

meets Cadbury’s chairman Roger Carr to outline a takeover deal
in cash and shares which valued Cadbury’s shares at 755 pence
each, but Carr dismissed the approach. The Kraft bid was worth
300 P in cash and 0.2589 new Kraft shares for each Cadbury
share.

Sept7:- Kraft’s goes public with the bid, but by this time the
value of the same offer had slipped to 745P per Cadbury share, or
10.2 billion Pounds. Cadbury promptly rejects the bid.

Sept.12:- Cadbury’s Carr in a cotter to Rosenfeld again rejects

the bid saying it was an “Unappealing prospect” being absorbed
into Kraft’s “Low growth conglomerate business”
Sept.16:- Warren Buffett, the world’s second richest man and a
leading share holder in Kraft with a 9.4percent stake, warned the
U.S food group not to overpay for Cadbury.

Sept.21:- Cadbury contests the UK Takeover panel to request

a “put up or shut up” request be sent to Kraft, which would give a
time frame for Kraft to came up with a formal bid.

Sept.23:- Cadbury CEO Todd Stitzer is reported at a Bank of

America /Merrill/Lynch conference as saying he saw some
potential benefit from a Kraft deal and discussed valuation with
investors, according to a note from the conference.

Sept.30:- UK Takeover Panel rules that Kraft has until 1700

GMT on Nov 9 to make a formal offer for Cadbury or walk away
for six months. Cadbury reiterates its rejection of the Kraft bid.

Oct.21:- Cadbury posts upbeat third-quarter trading with

underlying sales up 7 percent as in t raise its 2009 target for sales
and profit margin growth. The shares fail to react as a counter
bidder for Kraft is seen increasingly unlikely.

Oct.22:- Nestle and Hershey report third quarter results but

neither mention a Speculated joint bid for Cadbury with Nestlé’s
focus on increasing its share bug back.
Nov.3:- Kraft’s third quarter results disappoint investors with
weaker-than-expected revenue and as it cut its 2009 sales
forecast

CEO Rosenfeld says she will not overpay for Cadbury.

Nov.9:- Kraft formalizes its bid at the same terms for Cadbury
as the original approach 300P in cash and 0.2589 new Kraft share
for each Cadbury share- valued at 717P.

Nov.18:- Both Italy’s Ferren and Hershey said separately they

were reviewing a possible bid for Cadbury but gave no assurance
that either would make an offer.

Nov.23:- Cadbury shares hits all time high of 819-1/2 pence on

speculation of a battle between Kraft and rivals for the British
Chocolate maker.

Dec.4:- Kraft posts its offer document to Cadbury share holders

starting off a two month fight for the British group under UK
takeover rules. Kraft says its bid in new worth 713 pence a share
or 10.1 billion Pounds.

Dec.14:- Cadbury issues its official defense document

promising bigger dividends and strong growth as Cadbury
reminds its shareholders that Hershey and Ferrero may bid.
Dec.18:- Cadbury CEO Todd Stitzer tells Routers in an interview
that a significant number of its major shareholders do not believe
Kraft’s bid reflects Cadbury Standalone value.

Jan.5:- Kraft sweetens bid with 60P more cash but cuts shares
on offer to keep offer price unchanged.

Jan.6:- Kraft says it has a 1.52 percent take up for its offer for
Cadbury at its first closing date for the bid.

Jan.12:- Cadbury gives its final official defense against Kraft bid
reporting robust trading and rejecting the bid on valuation.
Ferrero pulls out; say sources close to the deal.

Jan.14:- Cadbury fives last words in its defense as media

reports say that Hershey is looking at mounting a solo bid, But
many analysis doubt. Whether Hershey can come up finance.

Jan.19:- A Kraft food agrees a deal to buy Cadbury on Tuesday

for around 11.9 billion Pounds ($19.55 billion).
 QUOTATION
“We are determined that the levels of investment that
take place in Cadbury’s in the UK are maintained”
Gordon Brown
(P.M.of UK)
“I think it’s (deal) will be poorer”
(Warren Buffett)
(Investor)
 Conclusion
After reading the story of Kraft & Cadbury dealing .We reached at
conclusion that Kraft has acquired the Cadbury in view to expand
their business in the developing country’s but Kraft is not going
to change the name of Cadbury because it will lose the market of
the of the Cadbury while the Cadbury agrees the deal because of
inability of generating the proper revenues from its business.