Cadbury Accepts Raised Bid From Kraft

Well, after four months of back and forth negotiations, including a warning from Warren Buffett that he wouldn't support the deal, we have a deal! Cadbury's board has accepted an offer from Kraft to sell itself to the American food giant for 11.9 Billion GBP. The board, which had steadfastly refused Kraft's offer calling it "derisory," apparently changed their mind after Kraft sweetened the deal from its original 10.2 Billion offer. Other potential bidders appear unlikely, since Kraft made Nestle go away by selling it the U.S frozen pizza business (Tombstone and DiGiornio) and Hershey probably doesn't want to spend that kind of money. So it looks like those delicious Easter Creme Eggs will soon be a product of... Kraft. Let's hope they don't get creative and stuff them with Velveeta.

CORRECT: AT A GLANCE: Cadbury Accepts Raised Bid From Kraft

Shiseido to Buy Bare Escentuals for $1.7 Billion - NYTimes.com

The stock market is down this morning, but Bare Escentuals (NASDAQ: BARE) is up 42% to $18.10. Yesterday, after the markets closed, Japanese cosmetics manufacturer Shiseido made a tender offer to purchase all BARE shares for $18.20 each, or a total purchase price of $1.7 billion. The acquisition allows Shiseido a quick entry into the major U.S. market since Bare Escentuals has a major presence here, including through Sephora and its own stores. The mineral makeup market is also growing rapidly, and Shiseido lacked an entrant in this market. Looks like 2010 is off to a big start in M&A activity!

Shiseido to Buy Bare Escentuals for $1.7 Billion - NYTimes.com

Busy Two Days for Nestle

Nestle's in-house transactional lawyers deserve a break! In the space of two days, the Swiss company:

1) Sold its take in U.S. Alcon Inc. to fellow Swiss company Novartis AG for $28.1 billion, thus exiting the ophthalmology sector completely;

2) Purchased Kraft Food's frozen-pizza business in the U.S. and Canada, for $3.7 billion in cash; and

3) Announced it is no longer bidding for Cadbury, leaving the nasty battle for the British candy maker to Kraft and Hershey.

When the dust settles, Nestle will be a focused food company. It still has a 29% stake in French cosmetics company L'Oreal SA, but will no doubt exit when it can. Nestle now adds DiGiorno and Tombstone to its Maggi, Buitoni, Hot Pockets, and Gerber. Up next -- General Mills?

Nestlé Sharpens Food Portfolio - WSJ.com