Sweet Dreams

Kraft Bids for Cadbury

$16.7 billion bid spurned.

In the case of Kraft and Cadbury, ifs and buts are not merely candy and nuts, but the potential makings of a $50 billion "global powerhouse." Bloomberg reports that Kraft Foods Inc., the second-largest food company, hasn't given up trying to take over Cadbury PLC, to create an even bigger conglomerate, despite Cadbury's rejection of its $16.7 billion bid. After the bid, Cadbury shares shot up as much as 42 percent, although it said that Kraft's offer undervalued the company. Kraft may have competition for Cadbury. One analyst suggested that Nestlé/Hershey might try to counterbid, with Nestlé taking gum and Hershey taking chocolate.