Retailers, consumers and prices
Check Out Line: Kraft wants to consume Cadbury
Kraft offered $16.7 billion for the world’s No. 2 candy and chocolate maker on Monday. Cadbury shares soared after it rejected the initial bid as investors bet Kraft or another company will sweeten the offer.
Analysts said Cadbury has few options but to look for a higher bid or more cash after the Kraft offer. Investors like the logic of the combination and few, if any, counterbids are seen likely to emerge.
Shares in Kraft, the maker of Oreo cookies and Ritz crackers, tumbled on Tuesday as investors expect the company’s earnings to be hurt in the near term if a deal goes through.
Meanwhile, Kraft’s offer could start a new round of food industry consolidation, analysts and deal advisors said.
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