By ANJALI CORDEIRO
Of DOW JONES NEWSWIRESJanuary 19, 2010: 12:37 PM ET
The fact that
To be sure, while Buffett has not spoken publicly, he could be less critical of the new terms since it involves the issuance of fewer
In the interview, Rosenfeld said her company doesn't need its investors to sign off on the deal because less stock was being issued. The
Rosenfeld declined to comment directly on Buffett's reaction to the new terms.
"I have no reason to believe Mr. Buffett doesn't support my management team," Rosenfeld said. Buffett's comments earlier in January had been seen as a rebuke of
Earlier Tuesday, Cadbury accepted a
Rosenfeld argued in the interview that despite the higher price,
She said that over the course of the transaction, she had conversations with many investors, including Buffett, and they told her there was "tremendous intrinsic value" in
Asked if other bidders might still emerge, Rosenfeld only said that she was confident her agreement with Cadbury would close. Hershey (HSY), far smaller than
The deal will add
Rosenfeld said, "It is hard to argue that a deal that is quickly accretive to earning can be bad for our shareholders. It is a transformational transaction."
The company is funding the cash portion of its bid through financing from banks that it had arranged for at the start of the takeover battle, proceeds from the sale of its pizza business to Nestle and cash on hand.
"There are revenue synergies and cost savings that will come from the combination that will be able to accelerate the growth of the combined company," Rosenfeld said.
Closing the lengthy, and sometimes acrimonious, deal would be seen as a positive for Rosenfeld. But
"They are getting an asset that will be very good for them. The price paid will take some justifying. It will take some time before Cadbury contributes to
Rosenfeld didn't say what would happen to Cadbury's top management, saying only that the company had a lot to work on in coming weeks.
"For a transaction of this magnitude we have been doing a great deal of integration planning...first hundred days planning," she said, adding that it will be key to ensure that Cadbury maintains its business momentum.
The agreement brings to an end a lengthy battle that often threatened to go sour for
"[I] feel quite good about the end results," Rosenfeld said Tuesday.
-By Anjali Cordeiro, Dow Jones Newswires
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