Description: — Cadbury Plc, the world’s second- biggest confectionery company, said an unsolicited takeover offer from Kraft Foods Inc. is an “unappealing prospect” due to its rival’s business model and “lower growth” prospects.

Source: Bloomberg.com

Date: 9/12/2009

Keys: Mergers and acquisitions, stock market

Link:  http://www.bloomberg.com/apps/news?pid=20601103&sid=a1pWbUXjfhaU

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?