Pursuing Cadbury (A)
(9 pages of text)
Keith Palmerston, managing director at PKG Capital, is thinking about what to do with his firm’s holdings in Kraft Foods. In early 2010, Kraft, primarily a grocery products firm, is trying to acquire Cadbury, a well-known U.K.-based chocolate manufacturer. Palmerston is trying to determine if Cadbury is a good fit for Kraft’s operations and if the transaction will generate value for shareholders. This case can be used in a strategy course as part of a negotiations module for strategic analysis, and to discuss the topic of valuation.
There are several topics that can be discussed with this case:
- Cadbury's value to Kraft from a strategic perspective.
- Competition in the global chocolate industry.
- Determing what price Kraft should offer for Cadbury.
United Kingdom, Large, 2010
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