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Questions Philip Morris and Kraft

1. Discuss the motivations of the takeover by Philip Morris. Do you


agree/disagree. Motivate your answer.
2. Kraft argues that the bid is too low. Comment on this response.
3. Explain the stock market responses at the date of the announcement. and show
how wealth is distributed if the takeover materializes.
4. Is value being created in this takeover? (Hint: use the stock market responses
of the two shares).
5. What is according to you the value of the restructuring plan of Kraft. Motivate
carefully how this is determined. Examine also critically the presented
financial figures.

In your solution put the emphasis on the last three questions. Good luck