{"id":141132,"date":"2010-01-05T13:34:00","date_gmt":"2010-01-05T18:34:00","guid":{"rendered":"tag:blogger.com,1999:blog-3087194156628161158.post-238656497978366548"},"modified":"2010-01-05T13:53:29","modified_gmt":"2010-01-05T18:53:29","slug":"financial-times-lombard-live-exchanging-pizza-for-chocolate","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/141132","title":{"rendered":"FINANCIAL TIMES: Lombard Live: Exchanging pizza for chocolate"},"content":{"rendered":"<p><!-- AddThis Button BEGIN -->By Andrew Hill <\/p>\n<p>Published: January 5 2010 16:52 | Last updated: January 5 2010 16:52<\/p>\n<div class=\"ft-story-body\"><script type=\"text\/javascript\" language=\"javascript\"> function floatContent(){var paraNum = \"3\" paraNum = paraNum - 1;var tb = document.getElementById('floating-con');var nl = document.getElementById('floating-target');if(tb.getElementsByTagName(\"div\").length> 0){if (nl.getElementsByTagName(\"p\").length>= paraNum){nl.insertBefore(tb,nl.getElementsByTagName(\"p\")[paraNum]);}else {if (nl.getElementsByTagName(\"p\").length == 3){nl.insertBefore(tb,nl.getElementsByTagName(\"p\")[2]);}else {nl.insertBefore(tb,nl.getElementsByTagName(\"p\")[0]);}}}}<\/script><\/p>\n<div class=\"clearfix\" id=\"floating-target\">\n<p>Paid for with pizza. That could be Cadbury\u2019s epitaph if the UK confectioner succumbs to Kraft\u2019s hostile bid.<\/p>\n<p>The US group\u2019s <a class=\"bodystrong\"  href=\"http:\/\/www.ft.com\/cms\/s\/0\/991c1018-f9ca-11de-adb4-00144feab49a.html\">sale of its substantial North American pizza business<\/a> to Nestl\u00e9 for $3.7bn, allows Kraft to plough $1.3bn into improving the proportion of cash in its offer for Cadbury. But unless the value of the whole bid is increased, this is rather like putting more mozzarella on your 12-inch margherita: it may make the pie more attractive to cheese-lovers, but it doesn\u2019t (yet) increase the diameter.<\/p>\n<div id=\"floating-con\">\n<div class=\"nav-collection clearfix\">\n<h3 class=\"section\"><span>EDITOR\u2019S CHOICE<\/span><\/h3>\n<div class=\"clearfix\">\n<h4 si=\"http:\/\/site-intelligence.com\/dummy\"><a href=\"http:\/\/everythingwarrenbuffett.blogspot.com\/2010\/01\/financial-times-video-buffett-warns.html\">Buffett warns Kraft on bid for Cadbury<\/a><span class=\"pub-date\"> &#8211; Jan-05<\/span><\/h4>\n<\/div>\n<div class=\"clearfix\">\n<h4 si=\"http:\/\/site-intelligence.com\/dummy\"><a href=\"http:\/\/everythingwarrenbuffett.blogspot.com\/2010\/01\/financial-times-cadbury-gets-creamed-by.html\">FT Alphaville: Cadbury gets creamed by Buffett<\/a><span class=\"pub-date\"> &#8211; Jan-05<\/span><\/h4>\n<\/div>\n<div class=\"clearfix\">\n<h4 si=\"http:\/\/site-intelligence.com\/dummy\"><a href=\"http:\/\/everythingwarrenbuffett.blogspot.com\/2010\/01\/bbc-news-krafts-cadbury-takeover-plans.html\">Video: Kraft sweetener still \u2018derisory\u2019<\/a><span class=\"pub-date\"> &#8211; Jan-05<\/span><\/h4>\n<\/div>\n<\/div>\n<\/div>\n<p>If you\u2019re a flag-waving Cadbury loyalist, of course, it makes no difference. The Kraft offer remains anathema. <\/p>\n<p>But less committed Cadbury investors also have reason to pause before January 19, the last date Kraft can amend its bid terms, and consider the consequences of the US bidder\u2019s latest move, and the implications of <a class=\"bodystrong\"  href=\"http:\/\/everythingwarrenbuffett.blogspot.com\/2010\/01\/berkshire-hathaway-news-release-from.html\">Warren Buffett\u2019s worries<\/a> about Kraft\u2019s determination to issue shares.<\/p>\n<p>Institutional and private shareholders will have the option to receive more cash as a proportion of the offer, it\u2019s true. But the US group has sold one of the fastest-growing parts of its business. That ought to fuel two concerns with Cadbury shareholders. Kraft is already committed to spending an estimated $1.2bn in restructuring costs, in order to reap annual savings of $625m from a takeover. By definition, if Kraft has to increase its bid (with cash, to placate Mr Buffett) and make up for the loss of the pizza business, it will have to squeeze further savings out of the Cadbury combination.<\/p>\n<p>Even if you dismiss concerns about Kraft\u2019s commitment to preserving Cadbury\u2019s culture, that raises a question of whether future savings are better milked by the UK group\u2019s existing managers, with their focus on the confectionery business, or by their more thinly spread counterparts at Kraft. <\/p>\n<\/div>\n<\/div>\n<p><a name=\"comments\"><span style=\"font-weight: bold;\">Share Investor Links<\/span><\/a><a name=\"comments\"><\/a><\/p>\n<p><a href=\"http:\/\/www.shareinvestorblog.com\/\">Share Investor Blog<\/a> &#8211; Stockmarket &amp; Business commentary<br \/><a href=\"http:\/\/shareinvestornz.blogspot.com\/2007\/02\/new-zealand-business-news.html\">Share Investor New Zealand Business News<\/a>&#8211; Get more business news<br \/>Discuss this topic @<a href=\"http:\/\/www.shareinvestorforum.com\/\"> Share Investor Forum<\/a> &#8211; <a href=\"http:\/\/shareinvestorforum.com\/ucp.php?mode=register&amp;sid=450a61250472e03fa25c205c9c1723f1\"><strong>Register<strong><\/strong><\/strong><\/a> free<br \/><a href=\"http:\/\/www.currency-market.blogspot.com\/\">Share Investor&#8217;s Daily Forex Updates<\/a><\/p>\n<p><span style=\"font-weight: bold;\">Recommended Amazon Reading<\/span><\/p>\n<table id=\"searchResults\" cellspacing=\"0\">\n<tbody>\n<tr class=\"clsEven\">\n<td class=\"tdimage\"><a href=\"http:\/\/astore.amazon.com\/shareinvestorbookstore-20\/detail\/1416573186\"><img decoding=\"async\" src=\"http:\/\/ecx.images-amazon.com\/images\/I\/41ZkoqL3OTL._SL75_.jpg\" alt=\"Warren Buffett and the Interpretation of Financial Statements: The Search for the Company with a Durable Competitive Advantage\" \/><\/a><\/td>\n<td class=\"tddescription\"><a href=\"http:\/\/astore.amazon.com\/shareinvestorbookstore-20\/detail\/1416573186\">Warren Buffett and the Interpretation of Financial Statements: The Search for the Company with a Durable Competitive Advantage<\/a> by <span class=\"by\">Mary Buffett<\/span><br \/>Buy new:        $16.47       \/ Used from:        $15.70<br \/><span class=\"availability\">Usually ships in 24 hours<\/span><\/td>\n<\/tr>\n<tr class=\"clsOdd\">\n<td class=\"tdimage\"><a href=\"http:\/\/astore.amazon.com\/shareinvestorbookstore-20\/detail\/0966446127\"><img decoding=\"async\" src=\"http:\/\/ecx.images-amazon.com\/images\/I\/315%2BfrL4YuL._SL75_.jpg\" alt=\"The Essays of Warren Buffett: Lessons for Corporate America, Second Edition\" \/><\/a><\/td>\n<td class=\"tddescription\"><a href=\"http:\/\/astore.amazon.com\/shareinvestorbookstore-20\/detail\/0966446127\">The Essays of Warren Buffett: Lessons for Corporate America, Second Edition<\/a> by <span class=\"by\">Warren E. 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That could be Cadbury\u2019s epitaph if the UK confectioner succumbs to Kraft\u2019s hostile bid. The US group\u2019s sale of its substantial North American pizza business to Nestl\u00e9 for $3.7bn, allows Kraft to plough $1.3bn into improving [&hellip;]<\/p>\n","protected":false},"author":833,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-141132","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/141132","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/833"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=141132"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/141132\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=141132"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=141132"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=141132"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}