Description
Keith Palmerston, managing director at PKG Capital, is thinking about what to do with his firm’s holdings in Kraft Foods. In early 2010, Kraft, primarily a grocery products firm, is trying to acquire Cadbury, a well-known U.K.-based chocolate manufacturer. Palmerston is trying to determine if Cadbury is a good fit for Kraft’s operations and if the transaction will generate value for shareholders. This case can be used in a strategy course as part of a negotiations module for strategic analysis, and to discuss the topic of valuation.
Learning Objective
There are several topics that can be discussed with this case: ·Cadbury's value to Kraft from a strategic perspective. ·Competition in the global chocolate industry. ·Determing what price Kraft should offer for Cadbury.