In last couple of days news about Cadbury- Kraft deal comes one after the other. So when we start a new week we have  practically three options analysts talking about:

  • Kraft
  • Hershey and Ferero coalition
  • Nestlé may bid as well


But when all the rumors and analysis read carefully, what I see as the most interesting option would be a Hershey bid backed by Nestlé. Nestlé definetely will not like to see a "Kraftbury" threat to its chocolate market, but it cannot make a direct bid to Cadbury due to antitrust concerns. In this case  Nestlé can give a hand to Hershey and share Cadbury with Hershey (i.e. chocolate business to Hershey, gum and candy business to Nestlé). Nestlé has no difficulty to raise funds for an acqusition, they are selling their shares in Alcon in January. Nestlé may also support Hershey to raise sufficient funds for a co-acqusition by buying Kitkat licence Hershey holds for US market....

Let's see what will bring this week...

Have a nice week!

Turgut Ziyal