Kraft to Buy Cadbury for $19.5 Billion
Updated from 4:13 a.m. EST
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) 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 TheStreet.com on Twitter and become a fan on Facebook.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV