Can anyone help with this case study there are 4 questions asked
Case Study : End of a British icon in Confectionery Business After 180 years as an icon of British business, Cadbury entered 2010 facing a fight for its independence. The threat came from Kraft Food, the American food giant behind brands such as Oreo and Dairylea, which intended a hostile takeover of the company. The move prompted widespread alarm among staff, trade unions, MP3 and even members of the Cadbury family, calling for Cadbury to remain in British hands. "[Kraft] won't understand the history and quality of the company," Felicity Loudon, a descendent of the company's founder, George Cadbury, told a reporter from the British Broadcasting Corporation. In November, MPs from Birmingham, where Cadbury is based, even tabled a House of Commons motion calling for government support to keep Cadbury in the hands of "an innovative British company". The government could do little to stop the takeover, however. The decision about whether or not it went ahead rest with the long list of investment banks and pension funds that made up Cadbury's shareholders. And whether or not they agreed to the deal had little to do with nostalgia, heritage or tradition. \"The nationality of the bidder doesn't make any difference - particularly as a large proportion of the shareholders are based in the US anyway," says James Targett, an analyst at Consumer Equity Research. \"The most important thing for shareholders is whether any bid represents good value. If the price is right, they will take it." So what is the right price? Kraft offered to buy Cadbury shares for 3 a piece, plus 0.26 new Kraft shares. That would value the company at about 9.8bn, or 7.30 per share. The Cadbury board, led by chairman Roger Carr, called the offer \"derisory\Shareholders had to decide on the offer made by Kraft. The consensus of opinion among nancial and business analysts in UK was the offer, at 7.30 a share, was just too low for shareholders to say yes. An offer in excess of 8 a share would create "much more of a dilemma for shareholders", said an analyst. Others suggested that an offer of 8.20 a share would seriously attract shareholder interest. and they would be obliged to sit down and talk. Kraft was prepared to pay more, especially after rumours of a rival bid from US confectioner Hershey were proved accurate. Kraft saw Cadbury as an important part of their future strategy and was determined to get the deal done. By end of January 2010 Cadbury nally succumbed to the chase made by Kraft. Cadbury board advised its shareholders to accept a new offer of 840 pence a share - valuing the company at 11 .5bn ($18.9bn) with a further dividend of 10 pence a share. (Adapted from an article by Edwin Lane, in BBC News Online dated December 24 2014 with modication done by Associate Professor Dr. Arzmi Yaacob What is the manner of the acquisition called and why? (20 marks) What dilemma do the shareholders face? (20 marks) Having an iconic brand synonymous with a nation may hinder a strategic option. Why is this so? (30 marks) Do you think it is advisable for Kraft to allow Cadbury to remain as it is and operate as a subsidiary? (30 marks) END
