Essay on Kraft and Cadbury Merger

3. How should the acquisition of MPIS be financed, taking into account the issues of control, flexibility, income and risk?

Two main risks need to be considered with this acquisition. The first risk is the contingent liabilities arising from Elson’s compensation and accumulated earnings from PTI’s interest-earning assets. Lane should provide the bank information on the accountant’s opinion on these contingent liabilities as rationale the bank’s valuation needs to discount them from their asking price.

* Derek graduated from the Telfer School of Management at the University of Ottawa 13 years ago, and his specialization in management.

The main concerns of this case are the way the shareholder stock will be handle (valued) and what the profitable advantages in acquiring Nicholson 's majority shares.

Cadbury is a British multinational confectionery company wholly owned by Mondelez International since 2010. It is the second-largest confectionery brand in the world after Wrigley's. Cadbury is internationally headquartered in Uxbridge, West London, and operates in more than 50 countries worldwide. It is famous for its Dairy Milk chocolate, the Creme Egg and Roses selection box, and many other confectionery products. Cadbury was established in Birmingham, England in 1824, by John Cadbury who sold tea, coffee and drinking chocolate. Cadbury developed the business with his brother Benjamin, followed by his sons Richard and George. George developed the Bournville estate, a model village designed to give the company's workers improved living conditions. Dairy Milk chocolate, introduced in 1905, used a higher proportion of milk within the recipe compared with rival products. By 1914, the chocolate was the company's best-selling product. Cadbury, alongside Rowntree's and Fry, were the big three British confectionery manufacturers throughout much of the nineteenth and twentieth centuries.

Question 4: What is the cost of not taking on the right projects and on mergers and acquisitions due to a decision making process based only on a legal standpoint?

control, (4) purchase of assets below replacement cost, and (5) synergy. From the standpoint of society, which of these reasons are justifiable? Which are not? Why is such a question relevant to a company like CompuTech, which is considering a specific acquisition? Explain your answers.

Mondelez, who is responsible in making Oreo cookies and Cadbury chocolates, recently sent a letter to Hershey’s proposing a tie-up. In that letter, Mondelez proposed a $23 billion bid for Hershey Co. to create a partnership between both the world’s largest candy making companies during a time when their companies’ sales are both under pressure.

how to finance a major acquisition. This question had led to contentious debate at the last board

Industry Analysis: Cadbury Schweppes (CS) is comprised of a global confectionery and beverage company. For the purpose of this case we will maintain our focus on the confectionery business and the assessment of adding to their sugar confectionery portfolio. CS is number three in the beverage business but see the opportunity to become the largest confectionery in the world. The categories are chocolates, sugar and chewing gum. At this time Adams is the number two sized in the gum business. This industry operates on “bigger is better in confectionery”. Their strategic discussions and ambitions appear to stay true, in mentality, to this mantra. This mantra could be potentially dangerous to the business. CS had a presence in over 70

QI-TECH, a Chinese manufacturer of precision Coordinate Measurement Machines, is a joint venture established by Indiver BV, a Dutch aircraft engine manufacturer and a Chinese state-owned enterprise QQMF. Looking for a strategic exit, Indiver BV, which holds 50% of QI-TECH, must negotiate a sale with its Chinese partner and a potential buyer, Brown & Sharpe. For this purpose Roger Kollbrunner, the Business Development Manager at Indivers BV, has to develop a viable deal structure and negotiation strategy.

Based on the given information in the case study regarding the acquisition of Nicholson File Company by Cooper Industries, there is no question that Cooper should try to gain control of Nicholson. This decision is based on an analysis of the bargaining positions of each group of Nicholson stockholders which have disparate goals and needs that need to be met. In addition, an appropriate payment method and specific dollar value based on a competitor's offer and Cooper financial data was decided. The remainder of this paper will provide the analysis and rationale for this determination.

In Britain there are 17 Cadbury and Schweppes sites. Ownership Cadbury is a public limited company. It has the opportunity to become larger than the other forms of private business organisation.

As mentioned above, the transaction between Pillsbury and General Mills will involve a stock-for-stock exchange that would pay Diageo over $10 billion; 141 million shares of common stock in addition to the assumption of $5.142 billion in debt. This debt figure  includes  Pillsbury’s  existing  debt  of  $142  million,   along with $5 billion in new borrowings that will be distributed to Diageo in the form of a special dividend before the deal is closed. After the transaction is completed, Diageo will own 33% of General Mills’  outstanding  shares.  If approved, the merge would result in Pillsbury operating as a wholly-owned subsidiary of General Mills. This essentially means that Pillsbury is completely controlled by GM, as GM would own 100% of Pillsbury’s stock.  If  the  transaction  is  executed,  all  of  Pillsbury’s  equity  ownership   will be held by General Mills. Diageo is primarily divesting its holding in Pillsbury in exchange for a substantial holding in General Mills.

This case study is a 2003 M&A deal simulation that occurs between Blackstone and Celanese. This is case presents the concerns of the Celanese and its side of the view of the deal.