Skip to:

Text size [+][-]  Friday March 19 2010GLOBAL EDITION

Considered view
23 Nov 2009 08:36

To bid or not to bid

Context News

Hershey is considering a bid to rival Kraft’s $16.7 billion offer to acquire Cadbury, according to the New York Times. The trustees of the charitable foundation that controls a majority of Hershey’s votes, is said to be pressuring the chocolate firm’s management to consider a $17 billion offer. The company is working with JPMorgan and Merrill Lynch-BofA.

With fewer resources and synergies from a deal, Hershey would need to stretch so precariously to buy Cadbury it could risk its controlling trust’s raison d’être. Still, never underestimate a shareholder whose priorities differ from those of, say, Kraft holder Warren Buffett.

Sign up to read the rest of this subscriber-only content, or if you are already a member please sign in here.

Forgotten your password? Get a password reminder.


This Views Flash will shortly be followed by a Considered View


More stories by:  Rob Cox






Share