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Gummy bear

17 December 2002 By Rob Cox

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Gummy bear

17 December 2002 By Rob Cox, Rob Cox, Rob Cox, Rob Cox

At about 14 times ebitda, the price is generous, but not out of line with previous deals in the confectionery industry. If Cadbury can make good on promises of $185m of synergies by 2006, the deal will cover its cost of capital by then. But it’s a tall order.

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