Kraft boss to jet into London to begin the charm offensive
Irene Rosenfeld, Kraft’s determined chief executive, is set to jet in to London this week in a bid to convince institutional shareholders to support the group’s proposed takeover of British confectionery firm Cadbury.
Rosenfeld, ranked as the sixth most powerful woman in the world by Forbes magazine for the past two years, will hold a series of meetings to persuade shareholders to support Kraft’s £10.2bn takeover offer for the Dairy Milk maker.
Rosenfeld has so far had the offer criticised by analysts as “too low”, and in a stinging open letter Cadbury chairman Roger Carr blasted it as “unattractive”.
But many industry observers believe the only issue of a takeover is the price. Sanford Bernstein analysts have suggested Kraft might have the flexibility to raise its bid up to 900p, up from the 745p it is currently offering.
Kraft’s biggest shareholder, billionaire investor Warren Buffett, has openly warned the group’s board about paying too much for Cadbury – sparking speculation that US chocolate maker Hershey may join Kraft to help fund the Cadbury bid and break up the spoils between them.