Wednesday, August 08, 2012

CADBURY-KRAFT: AN EXERCISE IN EGO MANAGEMENT

Kraft CEO Irene Rosenfield’s overeager bid for Cadbury has done more for Cadbury’s shareholders than its CEO Todd Stitzer could ever achieve in his tenure. A tale about how Todd pulled it off, by B&E’s Vareen Ray

Brian Weddington, VP-Senior Analyst, Corporate Finance Group, Moody’s Investor Service agrees on this to B&E, “We expect the follow-up offer by Kraft would be likely to involve a higher price.” Alex Sloane, Research Analyst – Food Producers, Evolution Securities, London tells B&E that a fair bid value per Cadbury share now could be 850p.

And for dear Todd, we have good news now! Ildikó Szalai, Packaged Foods Company Analyst, Euromonitor International (Asia) tells us that given the situation, “a Nestlé-Hershey joint bid for Cadbury is also a likely scenario.” Hats off to you Todd, for playing Irene just the way your shareholders wanted. Just one piece of advice. Get your golden parachutes and retrenchment bonuses in order; for once Irene finally manages to takeover Cadbury, there’s a saying that might come to haunt you: hell hath no fury as...



 

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