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Strategies & Market Trends : Speculating in Takeover Targets
CTG 7.840+0.4%Aug 12 4:00 PM EDT

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To: E_K_S who wrote (5719)12/12/2019 10:17:10 AM
From: richardred1 Recommendation  Read Replies (1) of 6363
I always wondered if Nestles would go after the J.M. Smucker Company? This After the Starbucks purchase.

To: richardred who wrote (4560)5/5/2018 11:27:14 AM
From: richardred1 Recommendation Read Replies (3) of 5720
JVA- Speculation

Nestles making a move on Coffee. JVA makes a small niche acquisition for themselves. The Steep N Brew Coffee Company which they say is profitable. /Coffee+Holding+Co.+%28JVA%29+Announces+Acquisition+of+Steep+N+Brew+Coffee+Co./14090205.html

Nestle close to deal for Starbucks bagged coffee, drinks business: report

LONDON (Reuters) - Nestle ( NESN.S), the world’s largest coffee company, is close to a deal with Starbucks Corp ( SBUX.O) for the part of its business that sells bagged coffee and drinks in supermarkets, according to media reports on Friday.

Any deal between the coffee giants would not involve any of the Seattle-based chain’s more than 28,000 cafes, according to Bloomberg, which reported the news after Swiss financial blog Inside Paradeplatz.

The deal could net Starbucks $3.8 billion after tax, according to Cowen analysts, based on Starbucks’ operating earnings excluding its K-Cups and the multiple recently paid for Keurig Green Mountain. They predicted Starbucks would use that to buy back shares.

An agreement will probably be announced on Monday, Bloomberg said.
JVA speculation- Nestles picked up Blue Bottle. The pickings are getting slim on the coffee front. JVA just a drop and still working on branding and Comfort acquisition. Still wondering if it will be good till the last drop. However I've like the Coffee Holding's Sonofresco acquisition from the get go. The board has approved a share repurchase program of up to $2M on this low outstanding stock. IMO a value sign on a hypothetical family private bid. JAB went on a endless coffee and related coffee acquisition spree. I expect Nestles to do the same. JAB/Green Mountain’s Keurig has the lions share of the self brewing market. Nespresso has very little in the US. I can see them going after this market. Green Mountain was JVA's largest customer. They've almost weened them off. IMO Nestles can just buy JVA as a R&D experiment and expand Sonofresco and have JVA fill their high end Nespresso cups? FARM on my watch list. It's speculative fever has gone up considerably IMO. Nestles has a stake in L'Oreal who's founder just passed away. Just maybe they cash out to fund a US acquisition spree in complimenting growth and market share moves.

P.S. COTT just sold it beverage business for over a billion. PR snip>The company also will pursue small acquisitions in water, coffee, tea and filtration, as well as “larger-scale acquisitions if and when the right value-enhancing opportunities present themselves,” CEO Jerry Fowden said.

With Blue Bottle, Nestlé eyes high-end challenge to Starbucks

Established in 2002, Blue Bottle has built its reputation on hand-drip coffee, which costs more than US$10 a cup. It’s a favorite of Silicon Valley techies, who have dubbed it “the iPhone of the coffee industry”.

With less than 40 outlets, the boutique coffee chain has reportedly sold a controlling stake to Swiss food and beverage giant Nestlé for around US$500 million.

To: richardred who wrote (4563)9/30/2017 9:57:33 AM
From: richardred Respond to of 5719
What next for L’Oréal? Speculation builds over Nestle ownership following Bettencourt’s death September 25, 2017 Written by Georgina Caldwell

Speculation is growing over the ownership of L’Oréal following the death of heiress Liliane Bettencourt, according to a report published by Reuters.

Bettencourt’s family owns 33 percent of the French cosmetics behemoth, while Nestle holds a 23 percent stake. An agreement between the two, which prevents either from increasing their stake and has been in place for 43 years, is due to expire within six months.

Several analysts are speculating that L’Oréal will buy in Nestle’s stake, with activist investor Third Point urging the company to dispose of its investment in L’Oréal. Others are predicting that Nestle may see an opportunity to up its shareholding. Both companies declined to comment, while Bettencourt’s daughter, Francoise Bettencourt-Meyers, has commented that the family remains committed to L’Oréal and its management.

Nestlé spares L’Oréal in $10 billion profit-boosting revamp September 27, 2017 Written by Louise Prance Miles

Nestlé has announced a $10 billion company revamp in a bid to boost profitability with the company said to be ‘actively managing’ its product line-up. However, its L’Oréal investment is said to be secure, for now.

Nestlé activist investor Dan Loeb from Third Point is said to have set out a strategy for the company to engage in a profit strategy over the scale of the business, with Nestlé Chief Executive Officer Mark Schneider thought to have agreed to plans.

However, Schneider stopped short of divesting the company’s 23 percent stake in L’Oréal, which he said was a ‘fabulous’ investment stating its approach to company is 'currently' not changing. The announcement follows speculation over the company’s share in the company following the death of Liliane Bettencourt last week.

The move heralds a shift from its known sales-focused strategy, with the company aiming for underlying trading operating profit margins between 17.5 and 18.5 percent by 2020, up 16 percent from 2016, according to the Financial Times. It will be the first time the company has a set a fixed profitability target.

Speaking at the Corinthia Hotel, London, Schneider stated that the company will focus on coffee, bottled water and pet care, with a move away from chocolate and sugary snacks, with selective investments and divestments said to affect around 10 percent of the business.

Speaking of the plan, Schneider stated, “We’ll need to trade out of some product areas and into others. We’ll act decisively, and the U.S. confectionery is a good example of that.”

The company’s skin-health business was another area the company was keen to develop, with the area being labelled a ‘strategic fit’, while the company will also cost-save in staffing with plans to reduce its seven sites in Paris down to just one, while also consolidating its Veyey operations.

It’s thought the adoption of a profit target by the US company is the start of a strong shift for large food companies as consumers continue to seek a greener angle to their mass-market buys. Meanwhile a strong push by investors to cut spends and develop into more lucrative areas is said to be on the up.
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