Cadbury and Kraft

[08012006]

What happens to your Cadbury shareholding if you do not send in your acceptance of the Kraft offer, and the takeover does go ahead ?
Do you know if you would have the same options, ie choice of all cash or extra Kraft shares ?

[dzug]

You need to read the terms of the offer. I haven't seen it.

What normally happens is that you don't get a choice, they send you a cheque for the cash. Ditto if you refuse the offer - you would get a cheque anyway if it went ahead.

But it can vary.

[R1Geezer]

Well is depends how many do the same. Once a company gets above a certain percentage, not sure what it is, they can force the issue. Below that they can't so if, for example, 50% refuse to sell then they can't buy, end of. In reality 95% of the share holders will be corporate and they'll take the premium on offer, they have no sentimentality in the matter. if the sale is forced then share holders will get ,market value of their shares sent to them after the deal is done.

[buildersmate]

... not 'market value' but the offer price from Kraft, if they get the necessary %age acceptances.
So if you fail to cash in your shares for a couple of years, you still only get the offer value.

[james412]

Cadbury - How the deal affects investors

http://www.dailymail....ffects-investors.html