Analysis of Kraft’s Takeover of Cadbury

Analysis of Krafts Takeover of Cadbury Overview Of Both Companies Cadbury’s origins date back to almost two centuries when it was founded by John Cadbury who started the business by selling cocoa and tea in Birmingham, UK. Later he expanded by starting a line of beverages after a merger with Indian Schweppes changing the company name to Cadbury Schweppes (Chinn 1998). Successful product developments and launches have enabled Cadbury to boast of an extensive confectionary line consisting of Cocoa Essence, Easter Eggs,Milk Chocolate, Cadbury Fingers, Dairy Milk, BournevilleChocolate, Milk Tray, Flake Creme Egg, Crunchie, Picnic, Curly windy, Wispa boost, Twirl and Time Out (Cadbury 2010). Kraft, on the other hand, is a US company about a century old, which started off as a door to door cheese business but expanded into other confectionary items through many takeovers previously such as Ritz Crackers, Nabisco (Oreos) and Phenix Cheese Corporation (Philadelphia Cheese) to achieve success (Smith 2009). It is second in terms of sales and popularity in the confectionary industry with annual revenues of $42 billion, operating in more than 150 countries (Kraft 2008). The Idea Of A Takeover Due to recessionary times following fall in sales, many companies in the confectionary industry recognized the potential of merging with their competitors to become competitive and enjoy economies of scale (Mauboussin, 2010). Cadbury had continued to be a strong performer in the confectionary industry and shown steady performance and growth in light of the turbulent economic times. Much of Cadbury’s growth was due to its presence in emerging global markets. Kraft was attracted to Cadbury due its strong performance during the economic crisis. This led to Kraft’s proposal to Cadbury of a takeover. The initial offering of $16.3 billion or 740pence per share by Kraft to Cadbury was outright rejected as derisory and an attempt by Kraft to take over Cadbury for cheap. Cadbury has had strong brands whose ico ns are etched in the minds all over the world, an impressive category line and extensive worldwide consumer base. Successful financial overview and steady business model reinforced Cadbury’s belief that it should be an independent company. Kraft’s bid did not come remotely close to reflecting the company’s true worth. Kraft proposed another bid shortly: This comprised of an offer of  £10.1 billion ($17 billion, same terms as the first bid in September-300 pence in cash and 0.2589 Kraft shares per Cadbury shares. The closing price of 9th November reflected the bid valuation of Cadbury at 710 pence which was lower than the share price of 761p on that day. Kraft’s share price: $26.53; Exchange rate (as agreed): $1.66 / GBP. Ratio: 0.2589 Kraft shares per every Cadbury share (26.53/1.66 * 0.2589 =  £ 4.133 + 4.13 =  £ 7.13).This was less than the price of Cadbury on that day and even the initial level of  £ 7.45. Cadbury rejected the offer on the basi s of undervalued Cadbury which was now of a lesser value. It was in fact even lower than the current Cadbury share price. The Cadbury chairman said:â€Å"Under your proposal, Cadbury would be absorbed into Kraft’s low growth, conglomerate business model, an unappealing prospect which contrasts sharply with our strategy to be a pure play confectionery company.†

Research Paper Essay Example | Topics and Well Written Essays - 750 words - 13

Research Paper - Essay Example Therefore, this paper would major on the various methods that were used to encounter Islamic influence in mediaeval Europe. The Islamic social, economic and political changes that were taking place in medieval Europe were met by different responses from Christians. One major response used in Europe was the anti-Islamic discourse. Such discourses tended to stereotype anything that was Islamic in nature. The stereotypes would touch on the religious, social, military, and technology among others. They were meant to instill fear on people to create a state of discomfort. Here, European cultures were made to appear as superior to the Islamic civilisation. It was more or less like a state of competition between the two rival religious groups (Al-Shawaf 1). The two rival civilizations in Europe were unique in that both were embedded in Christian and Islamic religions. Thus, religion took a centre stage in the social, economic and political problems faced in medieval Europe. That marked the emergence of a complex state of crisis in the economic, religious and sociopolitical campaign that was also known as crusades. Crusades were to be used to solve the existing problems in Europe. They then became the central part of European history. Crusades is also believed to have begun at around 11th century and ended in 1798. It was used by Europe as a weapon against Islamic expansion and aggression. They lasted for two decades, leading to the questioning of the moral legitimacy of the church. To some extent, crusades brought religious wars that tainted the image of the church. Destruction of the existing social life in Europe is one of the factors which drought discomfort in Europe. Europe viewed Islamic culture as barbaric and inferior to theirs. Some scholars reveal that Europe referred to Islam and Islamic culture as â€Å"the other† and "people of heresy†. Issues like polygamy, as opposed to monogamy, must have brought sharp contrast

Exploring the Bible Test #2 Assignment Example | Topics and Well Written Essays - 750 words

Exploring the Bible Test #2 - Assignment Example He tells us what he sees and what happens to him describing it as special. The events dazzled him evidently. However, the vision affects him saddening him because he cannot tell the people of what God is saying because he has spoken awful things. However the major thing is that God assures Isaiah that he has covered his sins and that is the whole element of the book that all men are sinners but that He will pay the costs of their sins through Christ Jesus his son. After God forgives us and covers us we are able to hear him just like Isaiah who thereafter offered himself as a servant. They have a choice to trust God or trust nations – either choice reflects whom they will serve. In Chapters 40-55, â€Å"Vocation of Servant hood is outlined.† The first nine chapters try to remind Israel of its calling and give the motivation to trust God and following nine chapters detail how Israel can become a servant. Explicit examples of servant hood are seen in Isaiah answering the call to be God’s prophet and Hezekiah who lives out the tension of Israel and still serve God first. He is not concerned with his nation’s survival; first he is more concerned on how its actions have provided the means by which God’s name has been brought to contempt. Thus, he knows 1God is aware of everything; 2God establishes the limits of our trials; 3 we should seek growth and not justification; 4there are many ‘whys’ that we will never understand; 5 trust in the face of anguish; 6 rewards the good and the bad; 7 when we learn what God is teaching us we grow and emerge victorious. Conventional wisdom refers to those opinions or judgments about a particular matter that are generally accepted by everyone while speculative wisdom like found in job incorporates issues such as the significance of life and God’s relationship with man . Proverbial wisdom on the other hand, gives account to short sayings which state rules for living and welfare. 1. Power difference