The stock market was closed yesterday for Labor Day, but markets were open in the rest of the world. Kraft Foods (KFT) took advantage of the time and made an offer to Cadbury (CBY) of the U.K. to merge.
Kraft offered a 42% premium over Cadbury’s current share price, but Cadbury’s board rejected the offer. This is the third major merger offer in a week and it shows that merger mania is heating up.
In my opinion, both stocks are Sells. If you own either one, I’d take this opportunity to get out.