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 Ranking :World͛s second largest food company after nestle.

 Brands available in 150 countries.
 Headquarter: Chicago, Illinois.
 Employees Approximately 100,000
 2009 Revenues $40.4 Billion.
 The firm has two main operating units-Kraft Foods North America
and Kraft Foods International
 Of its brands, more than 40 are at least 100 years old, nine brands
have revenue exceeding $1 billion and more than 50 additional
brands have revenues greater than $100 million.
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 Ranking: One of the world's largest confectionery companies with
No. 1 or No. 2 positions in more than 20 of the world's 50 biggest
confectionery markets.
 The largest and most broadly spread emerging markets business of
any confectionery company.
 Headquarter: Uxbridge, London
 Employees: 48,000.
 2009 Revenues:$9.5 Billion
 Has operations more than 60 countries. The company͛s business is
split into seven international units. 3
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 A company with approximately $50 billion in revenues.
Growth  A global powerhouse in snacks, confectionery and quick meals.
Categories  Exit low growth, low margin businesses.
 Geographically diversified combined business, with leading
positions and significant scale in key developing markets
@eveloping including India, Mexico, Brazil, China and Russia.
Markets Capitalize on popular growth trends.
 Strong presence in instant consumption channels in both
developed and developing markets, expanding the reach and
Growing margin potential of the combined business.
Channels
 The potential for meaningful revenue synergies over time from
investments in distribution, marketing and product
development.
Margin
Explosion
 In addition, there is a significant opportunity to realize pre-tax
cost savings.
 Improve portfolio mix.
Kraft foods͛ position as global sweet
snacks leader
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TIMELINE

 August 28th, 2009 ʹ Krafts͛ CEO and Chairman Irene Rosenfeld proposed
outline to Cadbury Chairman Roger Carr of the takeover deal comprising
300 pence in cash and 0.2589 new shares.
 September 7th ʹ Kraft goes public and offers 745 pence, a 31% premium
over Cadbury last trading price at 568 pence.
 September 16th ʹ Warren Buffet makes Kraft strategy difficult.
 @ecember 4th ʹ Kraft gives a further lower valuation at 713 pence per
share.
 January 5th, 2010 ʹ Kraft restructures bid at 770 pence but reduces the
number of new shares offered.
 January 19th ʹ Kraft agrees deal to buy Cadbury at US@ 19.55 bn .
 Terms and Conditions
Cadbury Security holders will be entitled to receive:
  
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 Representing, in aggregate, 840 pence per Cadbury Share and GBP
33.60 per Cadbury A@S.
 In addition, Cadbury Shareholders will be entitled to receive 10
pence per Cadbury share by way of a Special @ividend following the
date on which the Final Offer becomes or is declared unconditional.
 The Final Offer represents an attractive multiple of 13.0 times
Cadbury's underlying 2009 EBIT@A.
 Some terms
 The Final Offer does not require the approval of Kraft Foods
Shareholders. Accordingly, the condition relating to such approval,
as set out in the Original Offer @ocuments, is treated as satisfied for
the purposes of the Final Offer.
 Full acceptance of the Final Offer will result in the issue of 265
million New Kraft Foods Shares, representing approximately 18 per
cent. of the existing issued share capital and 15 per cent. of the
enlarged issued share capital of Kraft Foods.
 The Final Offer will remain open until further notice and at least 14
days' notice will be given if Kraft Foods decides to close the Final
Offer. Cadbury Security holders who have not yet accepted the
Offer are encouraged to do so without delay.
 Some terms cntd.
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As at 1.00 p.m. (London time) on 2 February 2010, Kraft Foods had
received valid acceptances of the Offer in respect of a total of 987,684,041
Cadbury Shares (including those represented by Cadbury A@Ss),
representing approximately 71.73 per cent. of the existing issued share
capital of Cadbury.
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Following receipt of sufficient acceptances (i.e. 75 per cent.), Kraft Foods
intends to procure that Cadbury will apply for the cancellation of the
listing of Cadbury Shares on the Official List and the trading on the London
Stock Exchange for listed securities.
 It is also proposed that, after Cadbury Shares are delisted, Cadbury will be
re-registered as a private company
 Criticism
 WARREN Buffett has slammed the much coveted Kraft ʹ Cadbury deal. Buffet
who is the world's most successful investor and owner of 9.4 per cent of
Kraft͛s shares has condemned the £11.9 billion acquisition of Cadbury. He
was quoted as saying ͞It͛s a bad deal͟. he was given a chance to vote on the
deal, he would ͞vote for a no͟
 The credit rating agency Fitch has also lowered the credit rating of both firms
to reflect the merged company's huge debt burden.
 Some quarters in the media have also raised doubts that Kraft Foods might
sacrifice the high quality standards observed by Cadbury, now that it will
have to cut costs to pay of the debt burden.
 The Unite union said it was a "very sad day for U.K. manufacturing" and that
it remained worries about the future of 7,000 workers in the U.K. and
Ireland.
 Cadbury͛s second-largest shareholder, Legal & General, issued a statement
saying the final price did not ͞fully reflect the long-term value of the
company͟ and that it was ͞disappointed͟ management had recommended
the offer for an ͞iconic and unique British company͟.
 Protest by workers.
Ratios (Pre & Post Acquisition)
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Long term debt Ratio 0.4106 0.4632
@ebt equity ratio 0.6966 0.8630
Total debt ratio 0.6121 0.6429
Times interest earned ratio 1.9960 1.9327

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Net working capital to total
0.0144 0.0171
assets ratio
Current ratio 1.0838 1.1049
Quick ratio 0.6986 0.7247

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Asset turnover ratio 0.1833 0.1183
Inventory turnover ratio 2.0183 1.4183

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Net profit margin 0.0581 0.1664
Return on assets 0.0292 0.0262
Return on equity 0.0274 0.0551
 Expected Synergies
 Global Powerhouse
 Geographical footprint
 Portfolio of more than 40 confectionery
brands
 Increased Investment In Cadbury͛s Iconic
brand
 Financial Effects

 Incremental Revenue
 Revenue growth of 4% to 5%
 Cash EPS by $ 0.5 in 2011
 Long term EPS growth rate 9-11%
 Annual cost saving of $675
Global leader
 Criticism and Risk Analysis

 According to Warren Buffet Kraft has

overvalued the price of Cadbury
 Global chocolate consumption has fallen
 Issue of debt has caused low rating to Kraft