This past weekend”s edition of Barrons contained a constructive article on Kraft Foods, titled “A Sweeter Future for Kraft.” The article recounts that, at around $30 per share, Kraft trades right where it stood in 2001, when Kraft was taken public by Philip Morris. Kraft’s earnings per share last year were around $2–no higher than … Read more
Kraft Foods successfully increased its bid for Cadbury on January 19th to 500 pence per share in cash and 0.1874 Kraft shares for each Cadbury share (up from its previous offer of 300 pence per share in cash and 0.2589 Kraft share for each Cadbury share). As expected, Kraft increased the cash portion of the … Read more
On September 8, Kraft made an unsolicited bid to acquire Cadbury. Strategically, we believe this acquisition makes sense for Kraft: Cadbury’s confectionery business offers some of the highest margins in the packaged-foods industry. Kraft’s bid also follows their long-term strategy to sell off less profitable brands while looking for acquisitions that could drive future growth. … Read more