Kraft Makes $16.7 Billion Bid For Cadbury

kraftmacaroni

More evidence that the deal (and even the megadeal) is back: Kraft (KFT) has announced a whopping $16.7 billion unsolicited bid for UK foodmaker Cadbury. The offer represents a huge 30% 40% premium, and on the news the entire UK market is getting a lift. Cadbury has rejected the deal, but shares are up 40% on the belief that there’s more to come.

We’d expect the US to follow suit when it opens tomorrow, simply on deal enthusiasm.

Indeed, after a long period of no-deals happening, M&A activity is back. Just this week, Disney announced its acquisition for Marvel, and Baker Hughes acquired BJ Services. There’s also been a lot of speculation of a forthcoming deal in the fertiliser space.

All this is of course great news for bankers and lawyers, who spent several months sitting on their hands or reaching out to headhnters.

NOW WATCH: Money & Markets videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.