An interesting chart from FT Alphaville showing the CDS spread changes in Kraft, the rejected bidder and Hersheys and Nestle, the two other firms linked to the acquisition of British chocolate-maker Cadburys:
The white line represents Kraft’s CDS spread, while the green and orange are for Hersheys and Nestle, respectively.
If we are to believe the CDS market, then the Deal Journal blogger might simply have been wrong in saying Hersheys won’t go for the deal. They just might.
Source: FT Alphaville