Cadbury Rejects Kraft Acquisition Bid

A battle in the global candy market seems to be in the making after Cadbury PLC’s speedy decision to turn down Kraft Foods Inc.’s $16.73 billion offer for control of the company. Kraft may soon find competition from Hershey for the acquisition of Cadbury, but Cadbury may has yet to receive an offer it will even consider.
 
Kraft decided to publicly announce its bid for Cadbury after the candy company privately rejected its bid, causing Cadbury to publicly state how Kraft’s bid “fundamentally undervalues” Cadbury. Kraft hopes to acquire Cadbury so that it could extend its candy empire throughout larger reaches of the world and combine its well-known brands with Cadbury’s most popular products.
 
Cadbury’s rejection of the bid leaves the company at an interest position, allowing it to decide between remaining an independent, though struggling, company and using a large bid to cash in. Hershey’s interest in Cadbury stems from Cadbury’s position as one of the last potential acquisitions in the global candy industry.

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