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    can someone explain this thing 2 me

    bascially kraft is accquirng cadbury for 11bn

    how is cadbury benefting? and why are they accepting the deal
    what happens to cadbury share holders i pressume they still keep their shares?


    how is kraft benefeting (greater market share global presence increased)
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    The share holders get some percentage of the 11bn i think depending on the amount of shares they own. so there wont be any share holders i think i think its much like the sale of a football club someone else just buys the shares. correct me if im wrong ?(i probably am)
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    (Original post by travis 3)
    can someone explain this thing 2 me

    bascially kraft is accquirng cadbury for 11bn

    how is cadbury benefting? and why are they accepting the deal
    what happens to cadbury share holders i pressume they still keep their shares?


    how is kraft benefeting (greater market share global presence increased)
    No the 11bn is spent buying the shares off the People who hold the. Essentially Kraft is buying all the shares for a good price so the shareholders get loads of money
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    Kraft buys loads of Cadbury shares for 11bn.
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    (Original post by travis 3)
    can someone explain this thing 2 me

    bascially kraft is accquirng cadbury for 11bn

    how is cadbury benefting? and why are they accepting the deal
    what happens to cadbury share holders i pressume they still keep their shares?


    how is kraft benefeting (greater market share global presence increased)
    Existing Cadbury shareholders will receive a combination of Kraft shares and cash in exchange for their shares in Cadbury, which will be acquired by Kraft as a company. The value of the remuneration that they receive in exchange for their Cadbury shares is greater than their current market value, hence the benefit to Cadbury shareholders. They also will now become shareholders in Kraft.

    Kraft benefits in that the company will now 'own' the future profit-making potential of Cadbury, hence their profits on a consolidated basis should increase.

    Finally, Kraft shareholders should benefit as they are the ultimate beneficiaries of this increased profit.

    That's a little simplified, but should cover the important points.
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    thanks
    ive got an interview 2morow at an asset managemtn company

    can any1 recommend some important news recently to look up on,
    plus any interesting markets im looking on the ft and the bbc but there are lots of stories sovi just wondering wot people thin kthe main ones are in the last week, recently?
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    (Original post by Illusionary)
    Existing Cadbury shareholders will receive a combination of Kraft shares and cash in exchange for their shares in Cadbury, which will be acquired by Kraft as a company. The value of the remuneration that they receive in exchange for their Cadbury shares is greater than their current market value, hence the benefit to Cadbury shareholders. They also will now become shareholders in Kraft.

    Kraft benefits in that the company will now 'own' the future profit-making potential of Cadbury, hence their profits on a consolidated basis should increase.

    Finally, Kraft shareholders should benefit as they are the ultimate beneficiaries of this increased profit.

    That's a little simplified, but should cover the important points.
    Is it a cash + share deal? I wasn't so sure if it was?

    Also interestingly theres alot of research these days showing big takeovers very rarely actually deliver more profit, just macho CEO's getting carried away with themselves.
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    (Original post by PNEJOE)
    Is it a cash + share deal? I wasn't so sure if it was?

    Also interestingly theres alot of research these days showing big takeovers very rarely actually deliver more profit, just macho CEO's getting carried away with themselves.
    Yep - clicky.

    500p cash and 0.1874 Kraft shares per Cadbury share.

    This was part of the reason why a revised offer was necessary - Kraft shares went down after the initial offer
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    and this benefits cadburys as a company in what way?? none i can see.

    Shame in my opinion. But greed wins over in the end doesnt it.
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    (Original post by warrenpenalver)
    and this benefits cadburys as a company in what way?? none i can see.

    Shame in my opinion. But greed wins over in the end doesnt it.
    Unfortunately, that's not the point here. Cadbury is owned by its shareholders, and the primary aim of a company's board is the maximisation of wealth for its shareholders. The Cadbury board believe that the Kraft deal is a way of achieving this, so they're obliged to recommend it to shareholders.
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    i do wonder how long it will be until the cadbury brand does get changed to suit USA tastes as its products get moulded to suit american different tastes??? Too many great british brands have been ruined that way!!

    Cadburys 100 million or so customers over UK, europe and asia cant match americas 300million!!!
 
 
 
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