CBY Ready To Become A Part Of KFT
Cadbury (NYSE: CBY) has accepted the takeover offer from Kraft Foods (NYSE: KFT), after the latter raised its bid to roughly $19 billion. Under the deal, KFT will pay 840 pence (or $13.7) for each CBY share, with shareholders receiving 500 pence a share in cash and 0.1874 share of KFT stock.
After the offer is unconditionally accepted, CBY shareholders will also receive 10 pence per share as a special dividend. KFT expects to realize a minimum of $675 million in cost savings every year by the end of the third year of the completion of the deal. KFT expects to bear one-time implementation cash expenses of roughly $1.3 billion in the first three years following the completion of the deal.
Kraft Foods said in a statement that the acquisition will be a strong strategic fit and help the company in “creating a global confectionery leader with a portfolio of more than 40 confectionery brands each with annual sales in excess of $100 million."
The news of the merger has been positive for both the companies, with KFT’s shares climbing 0.57% to $29.75 and CBY’s shares jumping 5.90% to $54.96 in pre-market trading.
Read more about Kraft Foods here.
