Business

Hershey Works On Solo Bid For Cadbury

Published

17 years ago

January 15, 2010

The Hershey Co. is assembling a bid to acquire British candy maker Cadbury PLC without the help of Italian candy maker Ferrero International, a person familiar with Hershey’s plans told The Associated Press on Wednesday.

Meanwhile, the company that bid first, American food giant Kraft, continued to defend its offer and issued an earnings forecast that may have been intended to show off its strength.

Hershey has been working on two parallel bids for Cadbury, one with Ferrero and one on its own. But Ferrero reportedly has withdrawn. Hershey is still crafting its own potential bid, one designed to top the $16.5 billion hostile offer from Kraft Foods Inc., the person familiar with Hershey said.

The person, who spoke on condition of anonymity because the person was not authorised to speak publicly about the matter, said Hershey hoped to avoid a bidding war by waiting until Cadbury’s shareholders make a decision on Kraft’s bid.

Kraft has until February 2 to win support from a majority of shareholders. It said last week that it had received acceptance from holders of 1.5 percent of Cadbury shares to date. Kraft’s deadline to increase its bid is January 19.

A spokesman for the maker of Hershey’s Kisses and Reese’s peanut butter cups said that, as a matter of policy, the company does not comment on merger and acquisition issues.

Cadbury shares rose, adding 12.5 pence, or 1.6 percent, to close at 789.50 on the London Stock Exchange. Hershey shares fell $1.14 to $36.61 in trading Wednesday.

An Italian business daily reported Wednesday that Ferrero International SA is no longer interested in bidding for Cadbury. The paper, il Sole 24 Ore, cited unidentified sources close to the family-run Italian firm.

Ferrero did not comment on the report.

Any bid for Cadbury would involve bringing jobs and assets to Hershey, while voting control of the company would remain with the charitable trust set up by its late founder, Milton S. Hershey, the person said.

In addition to borrowing money, a Hershey acquisition of Cadbury may require the issuance of new shares. However, the Hershey Trust Co. has maintained that it will not give up control of the company, a stance that analysts say limits the company’s flexibility to grow through a merger.

In November, Hershey and Ferrero told the London Stock Exchange they were considering an offer for Cadbury but cautioned one might not materialise.

Without a well-financed partner, analysts question how Hershey, America’s most recognisable name in chocolate, alone can afford the acquisition of the larger Cadbury.

Hershey posted revenue of $5.13 billion in 2008, while Cadbury reported $7.8 billion in 2008.

On Wednesday, Kraft maintained that it would be the best partner for Cadbury. Kraft shares fell 6 cents to $29.23.

If Kraft does win Cadbury, it would combine the world’s second-largest food maker with one of the world’s largest confectioners.

But Kraft, based in Northfield, Ill., is under pressure from its biggest shareholder, billionaire investor Warren Buffett, not to sweeten its offer with more shares, which he believes are undervalued. And it’s unclear what move Kraft will make now.

Analysts, worrying Kraft will overpay if it gets into a bidding war and wouldn’t see long-term gains from an acquisition as a result, have been cautious.

Cadbury has staunchly opposed a Kraft takeover. On Tuesday, Cadbury’s brass again urged shareholders to vote against the deal and criticized Kraft’s business model.

But Tuesday’s boost in Kraft’s full-year profit outlook was the second in two months. After logging profit gains, Kraft now expects to report earning at least $2 per share for 2009. It earlier forecast profit of at least $1.97 per share. The new outlook is in line with analyst expectations, but some analysts were critical.

“It’s a blatant attempt to spin the news,” said D.A. Davidson & Co. analyst Tim Ramey. Kraft moved its guidance to meet Wall Street expectations on a quarter that ended two weeks ago, he said.

Kraft may also be setting the stage for a graceful exit from bidding for Cadbury.

Business

Association Seeks Intervention to Save Domestic Airlines

Published

3 days ago

August 10, 2026

The Tide

The Vice Chairman of the Airline Operators of Nigeria (AON) and Chairman of Air Peace, Mr. Allen Onyema, has called on the Federal Government to urgently intervene in the nation’s aviation industry, warning that several domestic airlines may cease operations if the current challenges confronting the sector are not addressed.

Onyema gave the warning at the public presentation of the book, Pathways, Pilgrimage and Destiny: The Biography of Alhaji Muneer Bankole, held in Lagos and was obtained in Port Harcourt, at the weekend.

He described the aviation industry as being highly capital-intensive with relatively low financial returns, stressing that domestic airline operators are grappling with severe economic pressures that threaten their continued existence.

According to him, the industry has reached a critical stage and requires immediate government intervention to avert the collapse of many indigenous carriers.

Onyema warned that unless decisive measures are taken within the next 30 days, several Nigerian airlines could be forced to shut down their operations due to the harsh operating environment.

He also cautioned aviation labour unions against any planned picketing of airlines over the alleged non-remittance of the five per cent Ticket Sales Charge, saying such action could disrupt flight operations across the country.

The Air Peace Chairman maintained that if any airline was singled out for industrial action, other domestic operators would stand in solidarity, arguing that labour unions should not be used as instruments for resolving debt-related disputes between airlines and government agencies.

He lamented that more than 50 Nigerian airlines had folded over the years despite the success of many of their promoters in other sectors of the economy, attributing the trend to the difficult business environment in the aviation industry.

While reaffirming the commitment of airline operators to support government revenue generation, Onyema stressed that policies capable of crippling airline operations should be reviewed in the interest of the sector.

He noted that a thriving aviation industry remains critical to national economic growth, employment generation and improved connectivity across the country.

The AON Vice Chairman urged the Federal Government to engage relevant stakeholders and adopt sustainable measures that would strengthen the operational capacity and financial stability of indigenous airlines.

He expressed optimism that with timely policy support and constructive engagement between government and industry stakeholders, the nation’s aviation sector would overcome its current challenges and continue to contribute meaningfully to Nigeria’s socio-economic development.

King Onunwor

Business

CBN Reforms Impact Consumers As Dollar Card Spending Limits Rise

Published

3 days ago

August 10, 2026

The Tide

The Central Bank of Nigeria’s (CBN) foreign exchange reforms are beginning to deliver tangible benefits to consumers, as banks expand international spending limits on naira cards amid improved liquidity in the foreign exchange market.

The new limit represents a sharp increase from the $6,000 quarterly cap introduced in November 2025 and is 20-times higher than the $1,000 quarterly limit announced in July 2025.

The move comes as analysts point to a more liquid foreign exchange market following reforms introduced by the CBN over the past three years.

“This reflects the improved liquidity in the foreign exchange market. It also shows the focus of banks in maximising income from card payments,” said Ayokunle Olubunmi, head of Financial Institutions Ratings at Agusto & Co.

Muda Yusuf, chief executive officer of the Centre for the Promotion of Private Enterprise (CPPE), said the increase in card spending limits reflects the significant improvement in liquidity and confidence in Nigeria’s foreign exchange market.

“It’s an indication that the liquidity in the foreign exchange market has improved significantly and we can see that from the stability of the exchange rate. We can also see that reflected in our foreign reserves. All of these things reflect the level of confidence,” Yusuf said.

According to him, businesses and individuals are no longer under pressure to obtain foreign exchange for legitimate transactions, unlike in the past when access to dollars was constrained.

“It also means that citizens and those who use foreign exchange are no longer desperate about foreign exchange usage. Whether you want to use it through your card or access it for international trade, there is no anxiety, there is no pressure and there is no desperation.

All of these things have arisen because the level of confidence in the foreign exchange market and the outlook for the market have been very reassuring,” he said.

Yusuf added that the adjustment of international spending limits by banks demonstrates growing confidence in the sustainability of the foreign exchange market reforms.

“That is why we are seeing all these positive developments around the use of the naira card abroad and the limits that are now being adjusted by banks. It is a very good development and I hope we can sustain it. I am confident we will.”

The increase follows a series of policy changes by the apex bank aimed at deepening the foreign exchange market and improving access to foreign currency for legitimate transactions.

Under the CBN’s Foreign Exchange Manual, Fourth Edition, the maximum tuition fee remittance for Nigerian students pursuing undergraduate and postgraduate studies abroad was raised to $25,000 per semester, from the previous $15,000.

“Payment of tuition fees for undergraduate/postgraduate studies shall be subject to a maximum limit of $25,000.00 per semester,” the Manual states.

The expansion of international card limits also reflects growing confidence among lenders that foreign exchange liquidity has improved enough to support retail dollar transactions.

Speaking recently at the BusinessDay 14th Annual CEO Forum in Lagos, CBN Olayemi Cardoso, governor of the CBN said buying and selling activities now increasingly determine outcomes in the foreign exchange market, unlike in the past when market participants relied heavily on routine Central Bank interventions.

According to Cardoso, Nigeria’s net foreign exchange reserves have risen from just over $3 billion at the start of the reform programme to more than $40 billion, while gross reserves have climbed to about $52 billion, providing stronger confidence for investors and enabling the Central Bank to reserve interventions for periods of market stress rather than day-to-day liquidity management.

The restoration and expansion of international naira card spending limits are increasingly being seen as one of the clearest signs that the benefits of the CBN’s foreign exchange reforms are beginning to reach households, students and businesses making legitimate cross-border payments.

Business

WEC: FG Inaugurates Governing Board … As Nigeria Rejoins Council

Published

3 days ago

August 10, 2026

The Tide

Nigeria has rejoined the World Energy Council (WEC) with the inauguration of a National Member Committee and Governing Board to strengthen the country’s participation in global energy policy and investment discussions.

The Secretary-General and Chief Executive Officer, WEC, Dr Angela Wilkinson, disclosed this in a statement, last Thursday.

The Governing Board is chaired by the Chairman of Waltersmith Petroman Oil Ltd., Abdulrazaq Isa, while a former Chief Upstream Investment Officer of NNPC Ltd., Bala Wunti, will serve as the inaugural Chief Executive Officer.

Other members of the board are Prof. Wumi Iledare, Dr Mustapha Abdullahi, Mrs Aisha Farida Katagum, Dr Ainojie Irune, Dr Emmanuel Okon, Dr Victor Ekpenyong and Dr Imamuddeen Talba.

The Secretary-General and Chief Executive Officer, WEC, Dr Angela Wilkinson, who disclosed this in a statement, last Thursday, said the board comprises of experts in energy policy, regulation, investment, operations, research, technology and enterprise development.

Welcoming Nigeria into the council, Wilkinson said the country’s membership would strengthen its contribution to global energy discourse.

Wilkinson noted that “Nigeria has a significant leadership role to play within the global energy community.

“Nigeria has a significant leadership role, and the Member Committee will help bring that expertise and voice onto the world stage at the Riyadh World Energy Congress in April 2027 and beyond.

“Nigeria’s participation comes at a pivotal time as the country seeks to expand energy access, strengthen energy security, accelerate gas development and mobilise the capital required for industrialisation and sustainable economic growth.

“WEC Nigeria will convene leaders from across the energy ecosystem, apply the WEC’s globally recognised Energy Trilemma framework to Nigeria’s unique context, and promote evidence-based dialogue, practical collaboration and informed policymaking.

“It will also ensure that Nigerian and broader African perspectives contribute meaningfully to global energy conversations,” she said.

Wilkinson expressed confidence that Nigeria would play a significant leadership role at the World Energy Congress scheduled for Riyadh in April 2027 and beyond.

The statement also quoted the Chairman of WEC Nigeria, Isa, as describing the country’s participation as an opportunity to deepen national and African leadership within the global energy community through practical solutions tailored to regional development priorities.

He said the platform would promote collaboration across sectors and attract sustainable investments into Nigeria’s energy sector.

The Chief Executive Officer of WEC Nigeria, Wunti, was quoted in the statement as saying that the council would connect leadership, evidence and investment to build a secure, affordable and sustainable energy system.

“This system will be capable of driving economic growth and shared prosperity.”

According to him, the platform will also connect Nigerian institutions and businesses with international knowledge, technology, partnerships and investment opportunities through the World Energy Council’s global network.

Recall that WEC, founded in 1923, is the world’s oldest independent and impartial community of energy leaders and practitioners, advancing informed, collaborative and practical action across the global energy system.

Nigeria has been a member of the council with the Nigerian National Committee originally approved and established on April 6, 1960 before its re-establishment and expansion this year.

The renewed membership would provide an independent, technology-neutral platform bringing together government, industry, academia, finance and civil society to address Nigeria’s energy security, energy equity and environmental sustainability.