Appeared on January 22, 2010
David Becher Ph.D., associate professor of finance, was featured in an article in the Philadelphia Inquirer about the Kraft-Cadbury acquisition.
Becher has been researching the expected value of a target company when there is a contested takeover, examining deals between 1993 and 2003.
The article points out that Becher’s research indicates that when management turns down the first offer in a hostile deal, there is usually another bid later at a higher price – which is exactly what happened in the Kraft-Cadbury deal.