Shop Talk

Retailers, consumers and prices

Check Out Line: Kraft’s cash cache

November 4, 2009

Check out Kraft’s cash hoard. USA/******Kraft had almost $3 billion of cash on its books at the end of the third quarter, roughly four times what it had a year ago.******The world’s second-largest food maker might have disappointed***analysts with its third quarter sales and a profit outlook that implied a weaker-than-expected fourth quarter.  But when it comes to its battle to win Cadbury, at least the company is generating cash – expenses cuts helped Kraft generate $2.7 billion in cash in the first 9 months of 2009.******Also, Reuters Loan Pricing Corp reported on Tuesday that Kraft has arranged $9 billion in financing for a bid.******Sources have told Reuters that Kraft is not likely to raise its initial bid for Cadbury if it makes a formal offer by the Nov. 9 deadline. But analysts do think that shifting the offer to more cash and less Kraft stock — which is down 3 percent on Wednesday after the company posted lackluster third-quarter sales — could be a step in the right direction.******Also in the basket: ******Warnaco beats estimates; Liz Claiborne misses ******Molson Coors higher profit tops view, shares rise ******M&S sees no repeat of blanket pre-Christmas promotions ******Talking shop with Isaac Mizrahi (WWD)******(Reuters photo)

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