While Cadbury was initially vulnerable resulting in this take over, Kraft had to borrow heavily to afford the final price of 850p per share. In the coming months and years, Kraft will have to balance against recovering the money put into this acquisition (Wiggins, 2010). A risk, many British politicians and citizens alike fear will mean the end of their signature chocolate in an effort by Kraft to increase their profit margin quickly.

Case Study 2: Discussion

The Kraft acquisition of Cadbury is a corporate negotiation making headlines across the world both for the magnitude of the deal and the incredible hostility which marked the negotiations prior to the final signing of the agreement. Cadbury wound up in a financially vulnerable position after several strategically bold maneuvers ultimately resulted in a poor stock showing for the newly de- merged Dr. Pepper Snapple drinks company, and the reliance of Cadbury on...
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