|
Wednesday September 23, 03:40 PM
|
|
Cadbury CEO names price for Kraft deal - note
By Raji Menon
LONDON (Reuters) - Cadbury Chief Executive Todd Stitzer has told investors he does not expect Kraft to walk away from its proposed acquisition, according to a note obtained by Reuters, making a deal sound more likely.
"On price, Todd seemed to admit that a 15x EBITDA multiple would be a fair price," the note by Bank of America/Merrill Lynch sales specialist Simon Archer said.
Analysts say a multiple at that level puts the price for Cadbury just over 9 pounds per share, valuing the entire company at around 12.5 billion pounds ($20.42 billion), up from Kraft's initial bid of 745 pence per share.
Stitzer also outlined areas where synergies might be found to bolster Kraft's "modest" $625 million synergies target, the note said.
Stitzer and Kraft's boss Irene Rosenfeld are meeting at the two-day Bank of America/Merrill Lynch Global Consumer and Retail Conference, starting Tuesday, where they are speaking to investors in separate sessions.
(Reporting by Raji Menon)
(For more news on Reuters Money click http://www.reutersmoney.in)
