“Anything with an 8 handles, is tempting now”.

“Anything with an 8 handles, is tempting now”. On the BBC evening news, I see the O’Bama with Bush standing at his left, and Clinton to his right talking about the Haitian crisis. Which the Lady Clinton, in the same report called a “Biblical proportion” calamity. Mum-m-m, the nice people don’t start arguments. Nice people don’t complain when they’re presented with unsatisfactory situations. Nice people don’t come out fighting when they backed into a corner. Personally, if all this is true, there clearly must be times when I had to stop trying so hard to be polite. Dear O’Bama, Bush and Clinton couple, aren’t that I being just a little too forgiving of a situation that warrant more an objection, or even, an outright condemnation? Maybe, you’re carry on to don’t see how it’s probably time to become, if not exactly nasty, at least a little more proactive in working play? Are need to say that on my side, (i.e. my money) I should do a lot to ensure that a sensitive relationships is based on real mutual respect, and not just a superficial attention to ‘nicely’.

Kraft Must Raise Cadbury Offer by 10%, Shareholder Survey Shows. Jan. 17 (Bloomberg) -- Kraft Foods Inc. must raise its hostile 11 billion-pound ($17.9 billion) bid for Cadbury Plc by at least 10 percent to stand a chance of capturing the U.K. maker of Dairy Milk chocolate, an investor survey shows.Kraft, whose offer is worth about 771 pence a share, needs to raise that to at least 850 pence, the median price named by 9 Cadbury shareholders, who together account for about 11 percent of the shares. Responses ranged from 800 pence to 900 pence. A deadline to increase the bid passes on Jan. 19. Cadbury closed at 793.5 pence on Jan. 15, 2.9 percent above the value of Kraft’s bid, reflecting the chance the offer will be raised or a rival suitor such asHershey Co. will emerge. Hershey is stepping up efforts to prepare a bid and plans to make a decision after Kraft’s final offer, according to people with knowledge of the matter. Kraft Chief Executive Officer Irene Rosenfeld has vowed to stay “disciplined” on price. “There’s a lot of value in Cadbury,” said Peter Langerman, CEO of Mutual Series, which is a subsidiary of Franklin Resources Inc., which has a 7.7 percent stake in Cadbury. “When you look at the numbers that make sense for both Cadbury and Kraft, their offer is materially lower than that,” he said Jan. 15 in a telephone interview. Franklin Resources will reject the bid if it isn’t improved, Langerman said. The U.K. company’s second-largest investor, Legal & General Group Plc, said it remains opposed to Kraft’s offer on valuation grounds. Rival Offer? “Our position on Cadbury is unchanged; we continue to believe that the current Kraft bid does not reflect the long- term value offered by the company on a standalone basis,” Mark Burgess, head of equities at Legal & General, said in a statement. The insurer owned about 70 million Cadbury shares, a 5.1 percent stake, according to a Jan. 13 filing. Rival bidders have until Jan. 23 to decide whether to make a counter-proposal. Cadbury Chief Executive Officer Todd Stitzer said this week that Hershey and Cadbury could make an “appealing” combination. Hershey has been drafting commitment letters with its lenders, JPMorgan Chase & Co. and Bank of America Corp., to secure a multi-billion-dollar loan package, according to people with knowledge of the matter. “If Kraft walk away, it’s not the end of the world,” said Andy Brown, chief executive officer of Cedar Rock Capital Ltd. in London. “Just because they are the only corporation to have made an offer, it doesn’t mean they’re going to win or that’s what the company is worth.” ‘Short-Term Gain’ Morgan Stanley Investment Management Inc.’s Ann Thivierge said she “won’t be disappointed” if Kraft’s bid is rejected or the Toblerone maker walks away.Mario Gabelli, the chairman and chief executive officer of Gamco Investors Inc., also said his investment in Cadbury doesn’t hinge on a merger. “We don’t mind owning Cadbury for the next five years,” said Gabelli, whose mutual-fund firm owned almost 2.8 million American depository shares in Cadbury as of June 30. To be sure, some investors say the lack of a competitive auction means they’re prepared to sell for less than they originally anticipated. “Anything with an 8 handle is tempting now,” David Crawford, a fund manager at Octopus Investment Ltd. in London, said in an interview. “With the bid where it is, they don’t have to add much of a premium to get there.” Octopus owns 650,000 Cadbury shares. Crawford said he bought his holding after Kraft’s approach for a “short-term gain.” Cadbury shares closed at 568 pence Sept. 4, the last trading day before Kraft announced its proposal. Earnings Multiples. Jeffrey Scharf, president of Santa Cruz, California-based Scharf Investments, said 900 pence-a-share would be “compelling,” while an offer in the “low 800s” may struggle. Scharf Investments has about 760,000 Cadbury shares. In a document sent to shareholders on Jan. 12, Cadbury said comparable deals in the confectionery industry have taken place at multiples between 14.3 and 18.5 times earnings before interest, taxes, depreciation and amortization, whereas Kraft’s offer values the company at 12 times 2009 earnings. A bid at 14.3 times Cadbury’s 2009 earnings would come to more than 900 pence a share, according to Bloomberg calculations. “Kraft have been very smart, and if they win Cadbury they’ll get a bargain,” said Phil Spencer, who helps manage 7.4 million Cadbury shares for private clients at Brewin Dolphin Ltd., which has 20 billion pounds under management. “Even if they come back with 850 pence though, it’ll come down to the wire. Cadbury’s defense has been compelling.” Lifting Sales. In response to Kraft’s approach, Cadbury has lifted sales and profitability goals, outlined plans for improving cashflow, and highlighted the benefits of its presence in faster-growing emerging markets from India to Brazil. “Cadbury’s management haven’t put a foot wrong, they’ve been pugnacious and I can’t fault their defense,” said John Haynes, who helps manage 12 billion pounds including 5 million Cadbury shares at Rensburg Sheppards Plc in London. “I would still have problems selling at 850 pence, I don’t think that’s nearly enough for this unique asset. I am absolutely happy to remain a holder for three years.”