Cadbury CEO names price for Kraft deal

Cadbury chief executive Todd Stitzer has told investors he does not expect Kraft to walk away from its proposed acquisition, according to a note obtained by Reuters, making a deal sound more likely. "On price, Mr Stitzer seemed to admit that a 15x...

Cadbury chief executive Todd Stitzer has told investors he does not expect Kraft to walk away from its proposed acquisition, according to a note obtained by Reuters, making a deal sound more likely.

"On price, Mr Stitzer seemed to admit that a 15x EBITDA multiple would be a fair price," the note by Bank of America/Merrill Lynch sales specialist Simon Archer said.

Analysts say a multiple at that level puts the price for Cadbury just over £9 per share, valuing the entire company at around £12.5 billion, up from Kraft's initial bid of 745 pence per share.

Mr Stitzer also outlined areas where synergies might be found to bolster Kraft's "modest" $625 million (£380 million) synergies target, the note said.

Mr Stitzer and Kraft's boss Irene Rosenfeld are meeting at the two-day Bank of America/Merrill Lynch Global Consumer and Retail Conference, where they are speaking to investors in separate sessions.

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