Cadbury Takeover.

[DaveL485]

Well.....That sucks.

Thats about all I have to say on the matter lol

[mrmr96]

Takeovers happen in all industries and while its bad for those made redundant it will be better for those who remain working for a more profitable company (so goes the theory).

I just hope that they don't change the recipe.

[Fittster]

mrmr96 said:

Takeovers happen in all industries and while its bad for those made redundant it will be better for those who remain working for a more profitable company (so goes the theory).

I just hope that they don't change the recipe.

Hasn't a lot of research showed take overs actually destroy shareholder value?

[tybalt]

mrmr96 said:

Takeovers happen in all industries and while its bad for those made redundant it will be better for those who remain working for a more profitable company (so goes the theory).

I just hope that they don't change the recipe.

No it really doesn't go like that.

What happens is company 1 buys company 2 with a load of money they borrowed from the banks. Then they make company 2 pay back the money that was borrowed with interest. Company 2 gets screwed into the ground and effectively shut down. Afterwards company 1 assimilates any remnants of company 2.

Are Man Utd enjoying being bought out? No - they are starved of funds since all their cashflow goes straight onto the debt they now have to finance which arises from the buyout.

[mrmr96]

Fittster said:

mrmr96 said:

Takeovers happen in all industries and while its bad for those made redundant it will be better for those who remain working for a more profitable company (so goes the theory).

I just hope that they don't change the recipe.

Hasn't a lot of research showed take overs actually destroy shareholder value?

Agreed, undoubtedly there are cases where takeovers have failed dramatically, but equally there are success stories too.

[DaveL485]

tybalt said:

mrmr96 said:

Takeovers happen in all industries and while its bad for those made redundant it will be better for those who remain working for a more profitable company (so goes the theory).

I just hope that they don't change the recipe.

No it really doesn't go like that.

What happens is company 1 buys company 2 with a load of money they borrowed from the banks. Then they make company 2 pay back the money that was borrowed with interest. Company 2 gets screwed into the ground and effectively shut down. Afterwards company 1 assimilates any remnants of company 2.

Are Man Utd enjoying being bought out? No - they are starved of funds since all their cashflow goes straight onto the debt they now have to finance which arises from the buyout.

This is whats worrying. That and redundancies. That building in the background of all the news reports, the one with the big Cadbury sign out front......Thats where I work.....

[Frankeh]

I can't believe they're so short sighted.

Hostile takeover by increasingly stty chocolate/candy maker.
Gain access to cadburys recipes.
Decide the best way to make money ISN'T to introduce the Cadburys brand/chocolate in the US, but to cut jobs.

What the hell is wrong with these people.

[mrmr96]

DaveL485 said:

tybalt said:

mrmr96 said:

Takeovers happen in all industries and while its bad for those made redundant it will be better for those who remain working for a more profitable company (so goes the theory).

I just hope that they don't change the recipe.

No it really doesn't go like that.

What happens is company 1 buys company 2 with a load of money they borrowed from the banks. Then they make company 2 pay back the money that was borrowed with interest. Company 2 gets screwed into the ground and effectively shut down. Afterwards company 1 assimilates any remnants of company 2.

Are Man Utd enjoying being bought out? No - they are starved of funds since all their cashflow goes straight onto the debt they now have to finance which arises from the buyout.

This is whats worrying. That and redundancies. That building in the background of all the news reports, the one with the big Cadbury sign out front......Thats where I work.....

Not all acquisitions are funded by debt. The target isn't always screwed either. There will always be cost savings, other wise where's the point? Unfortunately this almost always means job losses in the target business. Most often these are in the admin functions (finance/sales/hr/it/management) which are duplicates of those in the bidding company. The staff on the ground doing the actual work are often ok unless major changes to the product offering are planned.

[Fittster]

mrmr96 said:

The target isn't always screwed either. There will always be cost savings, other wise where's the point?

Isn't the cheeky/leftie answer to that, the fees the city boys make. A long term stable growth company isn't going to earn them much.

[mrmr96]

Fittster said:

mrmr96 said:

The target isn't always screwed either. There will always be cost savings, other wise where's the point?

Isn't the cheeky/leftie answer to that, the fees the city boys make. A long term stable growth company isn't going to earn them much.

That is also true.

[king arthur]

Frankeh said:

Decide the best way to make money ISN'T to introduce the Cadburys brand/chocolate in the US, but to cut jobs.

Hershey has the rights to the Cadburys brand in the US does it not?

[Frankeh]

king arthur said:

Frankeh said:

Decide the best way to make money ISN'T to introduce the Cadburys brand/chocolate in the US, but to cut jobs.

Hershey has the rights to the Cadburys brand in the US does it not?

My mistake.
Do they have the rights to the recipes too?
Is there actually such a thing as a right to a recipe now I think about it..
Patented chocolate?

[Hunky Dory]

[quote=DaveL485This is whats worrying. That and redundancies. That building in the background of all the news reports, the one with the big Cadbury sign out front......Thats where I work.....
[/quote]

...In which case, good luck and I hope you're not one of the unlucky ones

[tybalt]

mrmr96 said:

Not all acquisitions are funded by debt. The target isn't always screwed either. There will always be cost savings, other wise where's the point? Unfortunately this almost always means job losses in the target business. Most often these are in the admin functions (finance/sales/hr/it/management) which are duplicates of those in the bidding company. The staff on the ground doing the actual work are often ok unless major changes to the product offering are planned.

Most of them are heavily leveraged. This one is.

What's the point? Asset stripping? Removal of a competitor?

What happens when a foreign corporation is in financial trouble. Frequently they retrench to the domestic market, savagely cutting overseas operations.

[ErnestM]

Frankeh said:

king arthur said:

Frankeh said:

Decide the best way to make money ISN'T to introduce the Cadburys brand/chocolate in the US, but to cut jobs.

Hershey has the rights to the Cadburys brand in the US does it not?

My mistake.
Do they have the rights to the recipes too?
Is there actually such a thing as a right to a recipe now I think about it..
Patented chocolate?

They do. However, not all traditional Cadbury items are manufactured by Hershey. I still have to go to the "British Section" in my local grocer to get the good stuff (and not just Cadbury, that's the only place I can get PG Tips, milky bars, bounty, Fry's Turkish Delight, etc, etc)

Also, the Hershey made stuff appears to have an additive that keeps the chocolate from melting at ambient US temperatures.

I blame global warming

[bga]

mrmr96 said:

[ Most often these are in the admin functions (finance/sales/hr/it/management) which are duplicates of those in the bidding company. The staff on the ground doing the actual work are often ok unless major changes to the product offering are planned.

Integrating Cadburys with Kraft will give the IT teams plenty to do for a few years. I would imagine that it will hit the outsourcing firms quite hard.

[Fittster]

"I have a lot of doubts,” Mr Buffett said, adding that he would vote against the bid if he had the chance. Mr Buffett, who owns the investment company Berkshire Hathaway, made the comments in an interview with CNBC.

Kraft’s shares dropped in pre-market trading after Mr Buffett’s comments. Kraft yesterday won the approval of Cadbury’s board for a takeover valued at 840p a share plus a 10p special dividend previously offered to shareholders.

Mr Buffett warned Kraft against overpaying for the UK company earlier this month, and voted against its original plan to issue 370m new shares to pay for the deal. Doing so was writing Cadbury a “blank cheque” because Kraft’s stock is undervalued, he said.

http://www.telegraph.co.uk/finance/newsbysector/re...