Cadbury Rejects $16.7 Billion Kraft Takeover Bid

Kraft Foods will likely have to up the ante if it hopes to acquire British confectionery and chocolate maker Cadbury, producer of the iconic Dairy Milk bar and Trident gum. On Sept. 7, Cadbury rejected a surprise $16.7 billion takeover bid from the U.S. food giant on the grounds that it fundamentally undervalues the British company, though Kraft’s offer was 31% above Cadbury’s closing price on Sept. 4.

Cadbury’s swift refusal of the offer sets the stage for what could become an expensive and protracted bidding war. Analysts suggest that rivals Hershey or Nestlé could enter the fray. While Kraft wouldn’t commit to raising its offer, the second-largest food maker in the U.S. seems determined to stick with its pursuit of the British company.

Sources: BusinessWeek, Wall Street Journal, New York Times

Merger Reshapes British Telco Landscape

France Telecom and Germany’s Deutsche Telekom announced plans early Sept. 8 to combine their British Orange and T-Mobile units into a new operator that will take the top spot in Britain’s fiercely competitive mobile phone services market, unseating Telefonica’s O2 unit and posing a stronger competitive challenge to Vodafone. The companies expect to reap $5.7 billion in savings from the combination.

Sources: Times of London, New York Times, Wall Street Journal

Obama Rallies Union Support for Healthcare Reform

On the Labor Day holiday in the U.S., President Barack Obama tried to reinvigorate support for his struggling health care agenda by giving a stirring, campaign-style speech to thousands of union members in Ohio. In a departure from the cool, patient tone he adopted over the summer, the president lashed out at the “lies” perpetuated by critics of reform and challenged them to come up with a better solution.

Source: Washington Post

OPEC Likes $70 Oil, Likely to Hold Levels

Oil ministers meeting in Vienna this week are likely to maintain their current production levels, which have helped move the price of oil to around $70 per barrel. Saudi Arabian oil minister Ali Al-Naimi told reporters ahead of the OPEC meeting that the market is in “very good shape” and that the current price of oil “is good for everybody, consumers and producers.”

Sources: Reuters, Bloomberg

Japan Sticks to Greenhouse Gas Targets

Yukio Hatoyama, Japan’s prime minister-elect, vowed on Monday to go ahead with plans for an aggressive cut in greenhouse gas emissions in spite of opposition from business groups. But business leaders remain concerned that the targets are too tough and cannot be met.

Sources: Financial Times, BusinessWeek

Google Tries to Placate European Critics of Books Plan

After a hearing in Brussels convened by the European Commission, Google said it would limit the out-of-print books it plans to make available online in order to appease European publishers, authors and other copyright holders objecting to a proposed American court settlement allowing Google to sell digital books on the Internet. Despite the concession, France says it still plans to formally oppose the settlement.

Sources: Times of London, New York Times, Financial Times

Swiss Banks Extend Disclosure to Britain

In the wake of Switzerland’s landmark agreement last month to disclose to American tax authorities the identities of thousands of secret bank account holders who might be evading U.S. taxes, Swiss and British authorities have now reached a similar agreement. The move marks the latest step by Switzerland to move out of the gray zone of tax havens. But even as the new U.K. deal was being announced, some American experts say that the U.S. agreement still could allow tax cheats to avoid detection.

Sources: New York Times, MarketWatch

Abu Dhabi Buys Chartered Semiconductor

In a sign of growing consolidation as the chipmaking industry emerges from its worst-ever downturn, Singapore-based contract manufacturer Chartered Semiconductor will be acquired for $1.8 billion by Abu Dhabi-based sovereign wealth fund ATIC.

Source: Reuters

Goldman Takes 21% Stake in Eurotunnel

The operator of the “chunnel” connecting Britain and France under the English Channel has obtained its first major institutional investor, as Goldman Sachs agreed to convert its bondholdings in Eurotunnel into a 21.2% ordinary equity stake.

Source: Telegraph

Is Big Beer Begging for an Antitrust Probe?

Big Beer looks as if it’s testing President Obama’s tolerance. Both Anheuser-Busch InBev—purveyor of the president’s preferred brew, Bud Light—and MillerCoors, a joint venture between SABMiller and Molson Coors, are raising prices at the same time, during a recession and while beer demand is slumping.

Source: Washington Post

Summer No Breeze for Hollywood

If the year’s first four months defied all expectations for what Hollywood could do in a recession, this summer delivered some sobering reality. From May 1 through Aug. 31, attendance was down 2.4% from 2008 and 6% from 2007. Among the lessons for studios: Moviegoers wanted to be amazed and to laugh; Twitter-era audience buzz can doom a movie fast; and A-list stars can’t always strike box-office gold.

Source: Los Angeles Times