CPB managaement totally over paid for this acquisition. The other crime is that they were advised by MS.
We can kiss off a dividend increase.
I am not against the acquisition. I am aginst the price that is to be paid. Such a dumb purchase will take CPB out of being aquired and allow dumb mgt to stay in place and take outlandish salaries based on performance. The Board is just too chummy with the current mgt and MS did not do its job.
CPB hasn't changed in nearly 15 years........and the stock price hasn't either!
When Conant joined in 2000 the stock was $32 and that's what it is today! What a joke!
CPB never learns either. Back in the 1990s they paid $1B for Pace salsa. What a disaster.
You'd think companies would learn. Don't people remember deals like Snapple when Quaker Oats bought them.
This is a value destoying acquisition by just another "playbook" CEO who will never create a dime of shareholder value. The next CEO will divest beverages as "non strategic" when category growth slows for a massive write down.
CPB would have been better off spending there money on "strategic advice" on the sale of the company to a value creator like Heinz.
What a joke. Enjoy you 3% dividend because that's all the return you'll be getting from this "investment".