Since my previous blog that predicted the Kraft offer of £7.25 a share for Cadbury’s several days before the MSM reported it, things have now moved on again. Hershey the US confectionary giant is expected to table a bid of up to £10.3 million for Cadbury’s very shortly and now it appears that Nestle are also seriously considering making a bid. The Cadbury share price is now close to £8 as hedge funds and speculators buy into the stock anticipating a sale above this figure. The reality is that a few months back Cadbury’s shares were running along quite nicely at around £5.50 and from a trading aspect nothing has really changed to justify the current price.

I will not be at all surprised if Cadbury hold off these hostile approaches and by the New Year it is confirmed the existing management team are still in place with the share price back below £7. But what do I know I am a humble Vending Machine expert rather than a high flying stock picker!

What ever happens now the Cadbury’s brand will remain a firm favourite in the UK with our drinks machine customers regularly purchasing Cadbury’s Hot Chocolate in significantly larger volumes to the other chocolate products we offer.

Written by: Colin from KSV.