On Monday night (18.01.2010) Cadbury’s board agreed to accept Irene Rosenfeld’s offer (CEO Kraft) for the takeover that had started four months ago. 840 pence (500p in cash + Kraft shares) + an additional 10p dividend is how much Kraft is going to pay for a Cadbury share. This values the UK confectionery group at £11.9 billions. More info here.

The reason why I have a particular interest in this deal is the fact that we had to simulate the “takeover battle” at the end of December 2009 for our Advance Corporate Finance final exam. Kraft’s bid at that point was 769/share and strangely enough, my evaluation using the free cash flows method was 846 pence/share.
Maybe this explains why I got an A. :)

Now, I’m just thinking.. If I had had a big bag of money to invest last month, I would have made some nice quick cash.