Research Update Update: Hershey Unlikely to Bid for Cadbury
A brief update to yesterday’s update on Kraft’s (KFT) pursuit of Cadbury (CBRY) .
As Suggested by Research Recap on Sep 10, it appears as though Hershey (HSY) will not be making a bid.
The Wall Street Journal reports today that “Hershey Co. remains stymied in its ability to assemble a bid for Cadbury PLC, say people familiar with the situation, likely leaving the U.K. sweets company with few alternatives to an unsolicited takeover offer from Kraft Foods Inc.”
With Nestle also unlikely to make a bid, for strategic and antitrust reasons, there may not be much further action until just before the Nov 9 deadline set by the UK Takeover Panel for Kraft to submit a bid or walk away.
Much may depend on dollar-sterling exchange rates. As noted yesterday a weakening pound works in Kraft’s favor.
As NY Times DealBook reports:
“If Kraft is smart, it will wait until just before the deadline to see if counterbids are made,” Marco Gulpers, an analyst at ING Financial Markets, said. “We’ve ruled out Nestlé and pretty much Hershey, too.”
For latest analyst comment on the deal, see Alacra Street Pulse.
You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
