Cadbury’s board regarding Kraft’s initial offer

Answer the following questions:
Please Note: there is no limitation of words for this assignment.

1. According to the case material, briefly describe the competitive landscape change in the confectionary industry before 2009. Do you think the confectionary industry was attractive at that time? [Hint: use the 5-forces model to guide your answer]
2. Briefly describe the development of this M&A deal between Cadbury and Kraft.
3. Who will benefit from the takeover? Explain the divergence of interest for different stakeholder groups. List at least 4 stakeholders.
4. In 2009 Kraft offered to buy Cadbury at USD 16.7 billion.

a. What was the response from Cadbury’s board regarding Kraft’s initial offer?

b. Why did the board of Cadbury make such response?

c. Do you agree with the board’s decision and why?

d. Do you think the board is functioning as it was expected to be? Please explain.

1. Hostile takeovers are often argued to be an important corporate governance mechanism. From the case and external research, do you agree with this argument? Why?

Sample Solution