Is a bidding war brewing for Cadbury PLC (NYSE ADR: CBY)?
In a widely anticipated move, Nestle SA (PINK: NSRGY) said yesterday (Monday) that it would sell its remaining 52% stake of Alcon Inc. (NYSE: ACN) to Swiss drug maker Novartis AG (NYSE ADR: NVS) for about $28 billion. That influx of cash could give Nestle the financial firepower to go up against Kraft Foods Inc. (NYSE: KFT) in a competing bid for Cadbury.
Nestle is always "open to acquisition opportunities if they fit strategically," Chief Executive Officer Paul Bulcke told The Wall Street Journal in September.
- Hot Stocks: With Alcon Sold, Will Nestle Try to Outmuscle Kraft in a Bid for Cadbury?
- Kraft's Bid for Cadbury Not Sweet Enough
Kraft Foods Inc.'s (NYSE: KFT) $16.7 billion unsolicited takeover attempt of Cadbury PLC (NYSE ADR: CBY) is the latest sign of consolidation in the highly competitive food industry, and will likely lead to two things: A bidding war for Cadbury and further consolidation in the sector. The world's second-largest foodmaker went public with its bid […]