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Description: Italy’s Ferrero and U.S.-based Hershey Co are considering a bid for chocolatier Cadbury Plc (CBRY.L), but Kraft Foods Inc (KFT.N) is still seen as the front-runner with its $16.8 billion hostile offer.

Source: Reuters.com

Date: 11/18/2009

Link: http://www.reuters.com/article/ousivMolt/idUSTRE5AH14V20091119

Questions for discussion:

  • Summarize the financial reasons favouring the acquisition of Cadbury by Ferrero and by Hershey.
  • Which firm do you believe would derive the greater financial benefit from the acquisition? Explain your thinking.

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