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CITY VIEWS: WHAT WILL HAPPEN NEXT IN THE CADBURY BID BATTLE?

JEREMY BATSTONE-CARR | CHARLES STANLEY
“Our “Reduce” recommendation is predicated on the view Cadbury will do enough to ensure sufficient shareholder support to see off its rivals. We think it unlikely that [the next trading] update will have disappointed, judging by the strong anecdotal evidence to suggest robust Christmas-related sales activity.”

HENK POTTS | BARCLAYS WEALTH
“There has been a lot of excitement around Kraft coming back with a sweetened bid. The deal we saw today with Nestlé gives them a cash pile which some people say could bring them into the frame. The market believes there is more to play for and, as the bid deadline approaches, speculation will reach fever pitch.”

DAVID BUIK | BGC PARTNERS

“Cadbury breached 800p this morning. The market believes Irene Rosenfeld will increase Kraft’s bid to at least 800p. Cadbury is due out with a trading statement on 15 January, and many will be surprised if it does not make encouraging reading, with growth of between 5-7 per cent and margins up 16-18 per cent.”