By Todd Zenger
Preview
In September 2009, Kraft, a company perhaps best known for its macaroni and cheese, made an unsolicited offer for Cadbury, the creator of the iconic Cadbury Easter Egg. Cadbury’s board of directors gave the offer a direct cut, and the U.K. public also proved very resistant to the idea of a U.S. firm buying a brand so closely aligned with the very essence of Britishness.
Kraft ignored the rejection and launched a hostile takeover, citing substantial synergy with Cadbury. The investment community, however, wasn’t convinced the buyout created value. Warren Buffett, a large Kraft shareholder, opposed the deal. Even as Kraft’s share price dropped, they pushed Cadbury to accept.