Nestle, Hershey and Kraft wants to eat Cadbury

World's second largest confectionery group Cadbury Schweppes UK (Cadbury) earlier had refused to Kraft Foods Inc. (Kraft) takeover proposal, and now came Nestle (Nestle) and Hershey (Hershey) two companies are also interested to buy.

Cadbury confectionery industry scramble overnight become the subject of worth in this company is expected to rise to 210 billion dollars.

Shares surge
Cadbury market capitalization of 17.5 billion U.S. dollars

Kraft earlier acquisition of Cadbury bid 16.7 billion U.S. dollars, to build a global retail, confectionery and fast food giant, but rejected Cadbury to price too low.

Cadbury share price soared 38% on the 7th, the market reached 17.5 billion U.S. dollars, exceeding Kraft's offer, indicating investors expect the industry to improve Kraft purchase price or other code. Cadbury 8 disk prices continue to rise 2.6%, 803 pence per share.

According to Evolution Securities, Panmure Gordon Capital Corporation and Gai Pule City Corporation (Kepler) said the world's largest food industry may hinder competitors Nestle Kraft's acquisition plans, and one way is to buy and carve up an alliance with Cadbury Hershey , received by the Nestle Cadbury's gum business, Hershey chocolate business is to receive.

The market research industry, according to Euromonitor International (Euromonitor) pointed out that Kraft if successful annexation of Cadbury, the world's candy market rate will have the world's largest confectionery industry Mars (Mars) 15% of the comparable, but Nestle city rate was 7.6%, the Kraft deal, if passed, would be harmful to Nestle.

Hershey will not sit with the M & Cadbury

A familiar Hershey's have also pointed out that Hershey can not sit idly by Kraft or other acquisition of Cadbury with the industry. He said: "Cadbury Hershey as the last one available for the industry mergers and acquisitions of large companies, this may be Kraft's offer to respond."

But the market value of about 8.8 billion acquisition of Cadbury to Hershey, funding may be difficult, this alliance with Nestle on possible election.

Nestle Chief Executive Officer Buck (Paul Bulcke) 7 at a media event, said that any acquisition opportunities consistent with corporate strategies are open.

It is understood that Nestle earliest in January next year will be the system provider Alcon contact lens solution (Alcon) to sell shares of Novartis Pharmaceutical (Novartis), total revenue reached 24 billion U.S. dollars, M & A funds may be source.

Nestle was the high rate of mobile phone

On Cadbury eyeing the industry include Kellogg (Kellogg) and Pepsi (Pepsi Co). But Kraft has said it will restart negotiations to persuade Cadbury.

London Jefferies analyst Bill Lockyer said: "The candy industry consolidation and the wind is nearing completion." Nestle since 2001 of the Lockerbie believes that the high probability of succeeding by Nestle.

But Cadbury declined to comment on whether the acquisition of other companies.

On the other hand, Moody's, Standard & Poor's, reputation ratings are down to watch list included Kraft, the Kraft acquisition of Cadbury, if successful, Kraft will be back more debt which is detrimental to its credit quality.