Description: — Cadbury Plc, the worldâ€™s second- biggest confectionery company, said an unsolicited takeover offer from Kraft Foods Inc. is an â€œunappealing prospectâ€ due to its rivalâ€™s business model and â€œlower growthâ€ prospects.
Keys: Mergers and acquisitions, stock market
Questions for discussion:
- Comment on the valuation offered by Kraft? Do you think the offer is fair? Explain your answer.
- Why would this merger make sense to Kraft? Explain your answer.
- What synergies might there be between these two firms?