The Cadbury board has advised its shareholders to accept a new offer of 840 pence a share - valuing the company at £11.5bn ($18.9bn).
This has truly been a long-awaited deal!
For potential investors out there, I do advise that you should heavily invest in Kraft now. I'm sure I do not have to waste any more breathe on why you should do so? I believe this is the most apposite time to do it before the share prices fluctuate in no time.
Let's take a look back at the comments I have made on Kraft's bid a few months back on MarketWatch.
Story: Kraft CEO adds Cadbury to ambitious master plan (131 days ago)
I fully concur with Rosenfeld's moves to acquire Cadbury and to restructure the company by eliminating factories and focussing its capital on some of its strongest brands.
Rosenfeld having stayed with Kraft for more than 25 years makes her the best candidate to head the company. I have always thought that the CEO should work in the company from the bottom level right from the start. He/she should deal with what the entire company deal with, that is selling the products, rather than disregarding the importance of the job.
People who starts from the top are simply shallow and myopic when it comes to conspicuous consumption by the consumers. They are seemingly oblivious to what is happening in the world and they thought that with a good package and a tasty treat, all consumers will buy their products, but they are so wrong.
Rosenfeld has all the experience when it comes to marketing, consumer focus and restructuring, so Kraft's shareholders should seriously stop doubting her decisions and they should give her their most sincere support till the end.
Story: Cadbury investors should be rushing for the exits (130 days ago)
I beg to differ. I do not agree that investors should dump all their Cadbury stocks now.
1. I am 70% sure that Irene Rosenfeld is going to pursue Cadbury till the end. She is going to fix this last piece of puzzle into the jigsaw and it will give her a flawless, incandescent masterpiece at the end. She worked so hard since 2007, no way is she going to give up piece-ing this last piece together.
Apparently, she is already trying to further cut costs at Kraft to increase her bid for Cadbury. So, investors, should you really give up your shares ?
2. Cadbury is a renowned brand in the chocolate industry. Even Philip Morris has to take a step back man. When you think of chocolate, you think of the quirky chocolate advertisements by Cadbury and immediately the first thing you do when you hit the supermarket, is to grab packets of chocolate from Cadbury.
Honestly speaking, Cadbury has one of the brightest future in the terms of a brand in the consumer industry. It stands tall besides the billion-dollar brands at P&G and Wal-Mart. No way will I give up Cadbury's stocks man!
Story: Cadbury investors should be rushing for the exits (129 days ago)
Either way, Cadbury's stock prices will not go down since it is strong independently.
Even if it is acquired, the stock prices will rise as well since the offer price must be an all time high i assume, maybe 20billion
To make things clear, I'm no genius investor. My predictions were merely based on my visceral feelings about the bid, no more than that.
Ostentacious? Hmmm, okay fine I admit. Currently, I'm just delirious with joy that I managed to predict correctly the culmination of the bid.
But I'm over it already. Really.
Okay, so let's get back to the analysing of the successful bid.
Oh wait, I think we had better take a break for now? I shall continue the part 2 of this post tomorrow.
So stay tuned and PLEASE do come back tomorrow for the part 2.
I promise that there are no more show-off stunts to be shown tomorrow and only concrete information will be provided.
Credits -bbc, -target3, -johnelkington
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