Article from BusinessWeek:
Kraft craves Cadbury's profitable brands and access to emerging economies. But the U.S. food giant may need to sweeten its hostile offer to buy them.
If you boil down the motivations behind Kraft Foods' hostile bid for Cadbury, you reach an undeniable fact: People all over the world love candy, gum, and chocolate.
..Because confections have little store-brand competition and sales stay steady even during downturns, food companies such as Kraft envy Cadbury's profit margins. A further factor makes them envy its growth prospects: Candy travels well.
Cadbury: access to emerging economies
Kraft macaroni-and-cheese may be an American favorite, but it won't necessarily catch on in China or India. Sweets are different.
The question, however, is how much Kraft is willing to pay for all this. On Nov. 9, Kraft submitted a hostile bid for Cadbury on the same terms as a September offer that was rejected. The offer valued Cadbury at
