Why kraft wants cadbury

Full Terms and Conditions apply to all Subscriptions. Or, if you are already a subscriber Sign in. Other options. Close drawer menu Financial Times International Edition. Search the FT Search. World Show more World. She has also pushed to broaden the company's distribution network to get beyond grocery stores and into convenience stores, dollar stores and gas stations.

The moves have helped improve Kraft's financial fortunes and won praise from analysts. Kraft's profit climbed 10 per cent in each of the past two quarters, although revenue fell. Rosenfeld told analysts Tuesday. Wrigley Jr. That deal gave Mars a commanding number one position in the global confectionery business and a dominant slice of the lucrative gum market.

Sales of chewing gum have risen faster than every other segment of the candy market in the past five years, thanks mainly to health-conscious consumers who are worried about obesity and opting for sugar-free gum. The Mars-Wrigley deal also left Cadbury as one of the few standalone players in the industry, something Ms.

Rosenfeld noted in Tuesday's conference call with analysts. The bidder also has to offer information about the locations of company headquarters. The US firm said its commitments would be valid for five years, unless circumstances changed significantly. Salmaan Khawaja is a corporate finance director, at Grant Thornton and worked at the takeover panel for two years.

He says Pfizer's behaviour is not just about complying with the revised rules. Changes in also gave greater prominence to the views of employees.

Representatives of the staff of the target company can give their views on the takeover. Changes to the Takeover Code require target companies to name who is interested. Cadbury's on a growth path, while Kraft's profits this quarter were less than stellar. But most pundits think the UK brand is bound to give in:. Newmark says that the idea that Cadbury is being offered less than its "true value" is absurd--and exactly the sort of reasoning the hurt Yahoo when it turned down Microsoft's bid.

In the Cadbury hostile takeover, it will come down to what Kraft and a few big Cadbury shareholders want. And it's hard to see either group wanting Cadbury to stay independent. Since Sept.