Cadbury's acceptance of Kraft Foods' takeover bid raised eyebrows yesterday (19 January) not least because of the UK confectioner's fierce criticism of the US food giant's business and management. Dean Best argues that, despite the Dairy Milk maker insisting Kraft's higher offer is "good value" for the company's investors, Cadbury's board was presiding over a business worth much more.
After a five-month siege, Kraft Foods today (19 January) all but won the highly-publicised battle for Cadbury, turning its hostile approach friendly and securing the support of the UK confectioner's board by sweetening its takeover bid. As the dust settles, Kraft claims the combined entity will benefit from US$675m in annual synergies, improved global distribution and a stronger presence in multiple retail channels. However, concerns linger over the company's debt levels and the impact this will have on investment. Katy Humphries reports.