unicornnews: Cadbury interest good for PR

Cadbury’s communication team, including their financial agency Finsbury, could be in for a busy few months after a takeover approach from rivals Kraft sparked much City speculation as to other possible buyers, even though the confectionary firm is not, in theory, for sale. Cadbury plc knocked back the £10.2 billion takeover offer from Kraft Foods Inc, stating that the possible buyer had “fundamentally” undervalued the firm. A statement from the chocolate maker added that the top guard there believed their “strong brands, unique category and geographic scope” assured a rosy future as a standalone firm.

But despite the knock back, City types began speculating yesterday that a second sweetened takeover offer from Kraft may now follow, as well as possible counter-bids from Nestle and Hershey. Whether any of the possible suitors would consider a hostile takeover isn’t clear, though Cadbury’s share price surged by 40% yesterday morning as a result of all the acquisition talk.

On a PR front, this potentially means an increased workload both for in-house teams at Cadbury’s and any possible suitors, as well as for the agencies they employ. According to PR Week, Brunswick were speaking for Kraft as the US food giant went public about its takeover approach yesterday.

For the financial PR sector any talk of major mergers or acquisitions is good news, M&A work a good earner for such agencies when other communications budgets are still being cut back.

Posted Tuesday September 8 2009 by Chris Cooke

Related categories: Financial PR