Kraft May Sell Assets to Buy Cadbury: Report
NORTHFIELD, Ill. (TheStreet) -- Weighing the value of chocolates, hot dogs and coffee sounds like the sort of thing to do on a regular grocery shopping trip, but it appears one food and beverage conglomerate is doing just that itself.
According to a report from the New York Post, Kraft (KFT) is said to be considering the sale of assets like its Maxwell House and Oscar Mayer brands in an attempt to boost the cash needed to buy candy maker Cadbury (CBY).
Last week, Kraft proposed $16.7 billion for Cadbury, with around 60% in stock and another $8 billion in cash. But since Kraft's stock has dropped since the offer was put out, unnamed sources cited in the report said Kraft is considering several options to take pressure off the stock portion of the deal structure.
Despite that, Cadbury rejected the original bid, saying the offer "fundamentally undervalues" the British chocolatier, leaving many to speculate that Kraft will have to raise the offer.Kraft is trying to line up loan financing from a consortium of lenders, with the report saying the Illinois-based food concern is working closely with Citigroup and Deutsche Bank. To secure the loans, the report continues, Kraft may pledge assets. -- Written by Sung Moss in New York Follow TheStreet.com on Twitter and become a fan on Facebook.
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