Dow Jones – hedge funds are looking for Kraft Foods Inc. to offer at least GBP11.7 billion for Cadbury PLC as the confectioner’s chief executive, Todd Stitzer, reportedly accused the U.S. food conglomerate of letting Cadbury’s share price “drift.”
One London-based hedge fund manager with an interest in Cadbury stock said most shareholders would be happy to see a valuation of around 15 times the company’s current-year earnings – or roughly 900 pence a share, valuing the chocolate bar maker at GBP12.3 billion – but that 850 pence, or around GBP11.7 billion, would probably be acceptable.
Hedge funds that have disclosed positions in Cadbury include New York-based Eton Park Capital Management and York Capital Management, also based in New York.
