Business · 3
According to analysts, why did Cadbury's board ultimately accept Kraft's hostile takeover bid in 2010?
Answer
They feared activist investors more than losing British ownership
Cadbury's board reportedly capitulated in part because activist shareholders were pressuring for a deal, making resistance to Kraft's offer costlier than accepting American ownership of the historic British chocolate maker.
💡 Did you know?
Kraft's 2010 hostile takeover of Cadbury succeeded partly because the British company's board feared activist investors more than American ownership—a defensive surrender.
Other options people guess
- They wanted access to Kraft's US dairy distribution network
- The Cadbury family demanded an immediate sale
- Kraft promised to keep all UK factories open permanently
Topics
- hostile-takeover
- corporate-governance
- cadbury
- kraft
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