I think that this is just the first of many take over attempts that we will see over the next few months. It is an uncanny coincidence that this offer comes a year to the day after last September's meltdown started with the collapse of Fannie Mae and Freddie Mac.

Now that the recession appears to have crested, cash rich companies that have been stockpiling their reserves to get through the downturn are now looking to buy for value with companies that have suppressed share prices.

It is not a shock that Cadbury's board declined Kraft's offer (for now) saying that it undervalued the group. However, shareholders who are anxious to get their portfolios north of where they were in August 2008 may be interested in the type of +40% bump in share prices that we have seen today.

The list of CPG companies trading at a significant discount vs. a year ago is a long one and this means there are a lot of targets for "value hunters" 

Add to this the potential for other CPG companies to unload non-core businesses like P&G's quiet disposal of its pharmaceutical business and the face of our industry may look very different six months from now.

Whether we like it or not, the big are going to get bigger. It's just a matter of when.

Jeff

Jeff Doucette

Principal, Sales Is Not Simple

Calgary, Canada

+1 403 475 4010

www.salesisnotsimple.com