This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Kraft to Buy Cadbury for $19.5 Billion

Updated from 4:13 a.m. EST

LONDON ( TheStreet) -- Kraft Foods (KFT) has agreed to buy Cadbury (CBY) in a deal valued at about 11.9 billion pounds ($19.5 billion).

Kraft, in a statement to the London Stock Exchange, said the offer values Cadbury at 840 pence a share. Cadbury shareholders also will be entitled to a special dividend of 10 pence a share.

Kraft will pay 500 pence a share in cash and 0.1874 a Kraft share for each Cadbury share.

Cadbury believes the offer represents good value for its shareholders, according to Chairman Roger Carr.

Kraft's previous offer for Cadbury was valued at a little more than $17 billion, an offer that Cadbury had called "derisory" and "unattractive."

Kraft said it expects pretax cost savings of at least $675 million a year by the end of the third year after the merger is completed.

Kraft had a deadline imposed by U.K. regulators to make a final takeover offer for the British candy and gum maker by the end of Tuesday.

The $19 billion price tag could put an end to efforts by Hershey (HSY - Get Report) to make a run at Cadbury. Reports over the weekend said Hershey was planning to bid at least $17.9 billion for Cadbury.

Hershey has until Saturday to decide if it wants to launch a bid.

-- Reported by Joseph Woelfel in New York.

Follow on Twitter and become a fan on Facebook.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
HSY $91.66 0.87%
AAPL $95.03 -2.90%
FB $116.73 7.20%
GOOG $691.02 -2.10%
TSLA $247.54 -1.60%


Chart of I:DJI
DOW 17,830.76 -210.79 -1.17%
S&P 500 2,075.81 -19.34 -0.92%
NASDAQ 4,805.2910 -57.85 -1.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs