{"id":198845,"date":"2010-01-19T13:04:43","date_gmt":"2010-01-19T18:04:43","guid":{"rendered":"http:\/\/kempton.wordpress.com\/?p=9122"},"modified":"2010-01-19T13:04:43","modified_gmt":"2010-01-19T18:04:43","slug":"kraft-to-buy-cadbury-for-19-billion","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/198845","title":{"rendered":"Kraft to buy Cadbury for $19 billion"},"content":{"rendered":"
<\/p>\n

From BBC “Kraft and Cadbury: How they compare<\/a><\/strong>” (emphasis added),<\/p>\n

\n

The boards of Cadbury and US giant Kraft Foods have agreed a deal which will see Kraft takeover the British chocolate maker in a deal valuing the company at \u00a311.5bn [~US$19.5 billion].<\/p>\n

It means that the world’s second-biggest confectionery company will form part of the world’s second-largest food company. This is how the two firms currently stack up.<\/strong><\/p>\n<\/blockquote>\n

From NYT “Behind Kraft\u2019s Raise, a Glimmer of Bigger Savings<\/a><\/strong>” (emphasis added),<\/p>\n

\n

Irene Rosenfeld, Kraft\u2019s chief executive, partially justified the higher price on an analyst conference call by announcing that she expects her company to reap an extra $50 million in annual cost savings through the merger. That brings the total figure to $675 million.<\/strong><\/p>\n

At a standard 10 percent discount rate, Kraft was essentially authorized to spend around another $500 million today for Cadbury<\/strong>, which is a little less than a fifth of what they ended up shelling out extra for the company.<\/p>\n<\/blockquote>\n

From NYT “For Britain, Cadbury Takeover Isn\u2019t Easy to Swallow<\/a><\/strong>“,<\/p>\n

\n

Prime Minister Gordon Brown said at a press conference that his government was \u201cdetermined that the levels of investment that take place in Cadburys in the United Kingdom are maintained,\u201d and, \u201cat a time when people are worried about their jobs, that jobs in Cadbury can be secure.\u201d<\/p>\n

Cadbury employs 6,000 people in Great Britain, and more than 46,000 worldwide.<\/p>\n

During its conference call Tuesday, Kraft reiterated that it would keep a strong presence in Britain and would be a \u201cnet importer\u201d of jobs in the country.<\/p>\n<\/blockquote>\n

And for those who has paid attention to the deal and Warren Buffett<\/a><\/strong>’s public opinion of the deal, Alice Schroeder (biographer of Buffett)<\/a><\/strong> made some insightful observations in “Buffett Orchestrates Kraft-Cadbury Deal” (emphasis added)<\/a><\/strong>,<\/p>\n

\n

[…] why did Buffett make his announcement that Berkshire would vote against a deal that included more stock? Why didn\u2019t he just tell Irene Rosenfeld that in private?<\/strong> Why set off a frenzy of rumors about a rift between the two of them?<\/p>\n

True, lines drawn in the sand in public are taken more seriously than warnings made in private.<\/strong> And Buffett\u2019s message was sent to all parties concerned \u2013 especially, perhaps, the arbs and Cadbury. <\/strong><\/p>\n<\/blockquote>\n

Posted in Business, Economics, investment, UK, united states, Warren Buffett, World \"\"<\/a> \"\"<\/a> \"\"<\/a> \"\"<\/a> \"\"<\/a> \"\"<\/div>\n","protected":false},"excerpt":{"rendered":"

From BBC “Kraft and Cadbury: How they compare” (emphasis added), The boards of Cadbury and US giant Kraft Foods have agreed a deal which will see Kraft takeover the British chocolate maker in a deal valuing the company at \u00a311.5bn [~US$19.5 billion]. It means that the world’s second-biggest confectionery company will form part of the […]<\/p>\n","protected":false},"author":841,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-198845","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/198845","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\/841"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=198845"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/198845\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=198845"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=198845"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=198845"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}