George S. May Business Blog

Kraft is given an ultimatum on Cadbury — Things are getting a bit testy over in the UK

The Times of London is reporting that the Takeover Panel overseeing the possible Kraft buyout of Cadbury has essentially issued a put up or shut up warning. Basically, the panel said that should a clear-cut, sensible (Kraft’s original offer was turned down, see below)  offer not be on the table by the deadline, Kraft is to stop courting Cadbury and walk away.

Kraft’s non-sensical offer:

“Cadbury, which recently rejected a $16.3 billion takeover bid from Kraft, said the U.S. company’s offer “made no strategic or financial sense for Cadbury and fundamentally undervalued the group and its prospects.”

Chairman of Cadbury Roger Carr said, “Cadbury has a strong position in the global confectionery market and the board is confident in Cadbury’s standalone pure play strategy and growth prospects.”

The Takeover Panel said Wednesday, “each side has accepted this ruling,” which allows for a six-month hiatus if Kraft does not make its intentions clear by Nov. 9.” (from www.themoneytimes.com)

Related posts:

1. Cadbury shareholders vote “yes” on takeover by Kraft Shareholders of Cadbury PLC have approved Kraft’s $19.5 billion offer. Kraft made the announcement earlier today that almost 72 percent approved the deal. This is...


2. Warren Buffett votes “no” on Cadbury take over — Cadbury shares plummet Warren Buffett recently voted no against Kraft’s potential takeover bid for Cadbury. Buffett is by far one of the most influential Kraft shareholders, so obviously...


3. Cadbury takeover finalized — Both boards agree to deal Kraft Foods Inc.’s offer has been approved and Kraft will buy Cadbury in a $19.5 billion deal. When the deal is closed, the newly formed...


4. Buffett Questioned by FCIC Billionaire investor Warren Buffett will be questioned today by the Financial Crisis Inquiry Commission along with the CEO of the credit rating agency Moody’s Corp....


5. Goldman Sachs Subpoenaed The Financial Crisis Inquiry Commission is back to work this week, and they’ve subpoenaed Goldman Sachs Inc. charging that instead of answering the questions asked...