9/8/09 am Tues Kraft's Bid for Cadbury Rebuffed

The following is not intended as advertising by a broker-dealer and is not a research report.

Post #95 The following is brought to you by Intellivest Securities Research, Inc. The following is not intended as advertising by a broker-dealer and is not a research report. Towards the end of this Blog is an update of the Dow 30's most recent SEC filings.

A read of Tuesday's 9/8/09 print editions of: Wall Street Journal, Financial Times, Investors Business Daily, New York Times, Atl Journal Const, & USA Today yielded the following stories about Dow Jones Industrial Average 30 component companies and the Dow with stories about the Dow aggregated first and then items about Dow Jones Industrial Average 30 companies presented alphabetically, followed by symbol and Thursday's closing price and related data:

Dow: No mentions since the last Dow action was last Friday.

AT&T T $25.51 +0.36 1.43% 14,893,880 NYSE: WSJ pB1 has a story about Edward E. Whitacre Jr. the Chairman of GM and notes he is the former CEO of AT&T.

AA $12.19 +0.18 1.5% 16,391,164 NYSE: No mentions found.

Amex AXP $32.81 +0.35 1.08% 6,004,884 NYSE: NYT pB1: "The Billionaire Who didn't Panic" by Graham Bowley says Buffer made big bets last fall on Goldman Sachs and GE and his Berkshire Hathaway is buying fewer stocks. some stocks he bet on that looks like he may do ok on are GE, American Express and Bank of America.

BofAm BAC $17.06 +0.22 1.31% 165,395,460 NYSE: NYT pB1: "The Billionaire Who didn't Panic" by Graham Bowley says Buffer made big bets last fall on Goldman Sachs and GE and his Berkshire Hathaway is buying fewer stocks. some stocks he bet on that looks like he may do ok on are GE, American Express and Bank of America.


Boeing BA $49.12 +0.66 1.36% 5,305,162 NYSE: WSJ pB4 "Airbus Ruling Fuels Critics - WTO Finding Bolsters Boeing's Backers in Congress" by Daniel Michaels, August Cole and John W. Miller" says the World Trade Organization's findings that Airbus received illegal subsidies from European govs provides ammo to BA's backers in Congress as they try to thwart Airbus' bid in a US defense contract.

IBD pA1 "US/Boeing Win Trade Ruling Vs. Airbus, But It's A Long Flight With Many Stops - But Europe countersuing and decision preliminary: settlement seen, one day" says the WTO's preliminar ruling against Airbus is the first round fo a long running dispute. Boeing has had huge losses in market share, revenue and thousands of jobs since the US raised its dispute. The EU has six months to respond to the preliminary findings.

CAT $46.12 +1.08 2.4% 6,732,549 NYSE: No mentions found.

Chevron CVX $68.92 +0.59 0.86% 5,250,766 NYSE: NYT pB8: Chevron Offers Evidence in Ecuador Bribery Case" says on Mon Chevron gave Ecuadorean authorities videos and emails that it said provided evidence of a bribery scheme linked to a $27 bil envioronmental damages lawsuit against it where last week the judge recused himself.

Cisco CSCO $21.84 +0.35 1.63% 28,628,814 NASDAQ-GS: WSJ pB1 "Group of Microsoft Rivals Nears Patent Deal in Bid to Protect Linux" by Nick Wingield says MSFT has said that companies using the Linux operating system may be violating Microsoft patents. Now a goup of Microsoft rivals is about to acquire a set of patents formerly owned by MSFT to avert any legal threat. Linux is a free open source operating system and some say it is more secure than Windows. The group includes major supporters of open source software including IBM and will get 22 patents that MSFT sold earlier this year to Allied Security Trust whose members include Verizon Communications, Cisco and Hewlett-Packard. The new group is called the Open Invention Network.

KO $49.97 +0.39 0.79% 6,799,428 NYSE: No mentions found.

Disney DIS $25.94 +0.50 1.97% 10,573,813 NYSE: IBD pA5 "Cacophony of Music Video Games Hitting Market" by Patrick Seitz says that a series of major music video game releases are coming out Wed with the launch of "The Beatles: Rock Band" which features the 1964 "A Hard Day's Night." Story says Disney has karaoke game "Disney Sing It" due out Tuesday which is produced by Dis and distributed by Electornic Arts featurres the music of Disney stars like Miley Cyrus, Vanessa Hudgens and the Cheetah Girls.

DD $31.72 +0.09 0.28% 4,809,070 NYSE: No mentions found.

XOM $69.15 +0.89 1.3% 13,082,085 NYSE: No mentions found.

GE $13.87 +0.42 3.12% 71,394,309 NYSE: NYT pB1: "The Billionaire Who didn't Panic" by Graham Bowley says Buffer made big bets last fall on Goldman Sachs and GE and his Berkshire Hathaway is buying fewer stocks. some stocks he bet on that looks like he may do ok on are GE, American Express and Bank of America.

Hewlett-Packard HPQ $45.1 +0.65 1.46% 7,977,178 NYSE: WSJ pB1 "Group of Microsoft Rivals Nears Patent Deal in Bid to Protect Linux" by Nick Wingield says MSFT has said that companies using the Linux operating system may be violating Microsoft patents. Now a goup of Microsoft rivals is about to acquire a set of patents formerly owned by MSFT to avert any legal threat. Linux is a free open source oeprating system and some say it is more secure than Windows. The group includes major supporters of open source software including IBM and will get 22 patents that MSFT sold earlier this year to Allied Security Trust whose members include Verizon Communications, Cisco and Hewlett-Packard. The new group is called the Open Invention Network.

WSJ pB5 "Tech Journal - Start-Ups Aim to Help Tame corporate Data - New Services Give IT Professionals Google-Like Abilities to Search Complex Systems, Growing Piles of Information" says several tech startups are involved in this effort. While consumers have been able to use search enginges to find things on the Web, there hasn't been many tools for companies to search their servers because most companies wall off their IT infrastructures and their data for security and compliance reasons. Many companies use a hodgepodge of tech from providers such as IBM, Hewlett-Packard and Dell.

IBd pA6 "New Venture Fund Has Money To Spend Beyond Skyope Splash" by Brian Deagon says in July Netscape founder marc Andreessen and Ben Horowitz formed a new vc firm, Andreessen Horowitz, with a fund of $300 million. The two have collaborated for 15 years and started 3 companies including Opsware, which Hewlett-Packard bought for 1.6 bil 2 years ago.

HD $27.01 +0.11 0.41% 7,045,807 NYSE: No mentions found.

INTC $19.64 +0.22 1.13% 46,728,643 NASDAQ-GS: No mentions found.

IBM $117.4 +1.07 0.92% 2,973,766 NYSE: WSJ pB1 "Group of Microsoft Rivals Nears Patent Deal in Bid to Protect Linux" by Nick Wingield says MSFT has said that companies using the Linux operating system may be violating Microsoft patents. Now a group of Microsoft rivals is about to acquire a set of patents formerly owned by MSFT to avert any legal threat. Linux is a free open source oeprating system and some say it is more secure than Windows. The group includes major supporters of open source software including IBM and will get 22 patents that MSFT sold earlier this year to Allied Security Trust whose members include Verizon Communications, Cisco and Hewlett-Packard. The new group is called the Open Invention Network.

WSJ pB5 "Tech Journal - Start-Ups Aim to Help Tame corporate Data - New Services Give IT Professionals Google-Like Abilities to Search Complex Systems, Growing Piles of Information" says several tech startups are involved in this effort. While consumers have been able to use search enginges to find things on the Web, there hasn't been many tools for companies to search their servers because most companies wall off their IT infrastructures and their data for security and compliance reasons. Many companies use a hodgepodge of tech from providers such as IBM, Hewlett-Packard and Dell.

JPM $42.28 +0.17 0.4% 19,749,251 NYSE: No mentions found.

Johnson & Johnson JNJ $60.3 +0.61 1.02% 6,013,767 NYSE: IBD pA9 "Elan Decliens Further On Tysabri ruling" says shares of Elan continued to sag riday afer a US judge ruled Elan's deal with JNJ breached an earlier agreement Elan had with Biogen Idec for the multiple sclerosisdrug, tysabri.


Kraft KFT $28.12 +0.13 0.46% 3,621,918 NYSE: WSJ pA1 "Cadbury Sour on Kraft Bid - British Firm Rebuffs $16.73 Bil Offer: Sweetened Proposal, rival Hershey Loom" says Cadbury PLC's quick rejection of Kraft Foods Inc.'s surprise $16.73 bil takeover offers sets the state for a battle that could change the world's candy market. On Mon. afternoon, Hershey said it may respond to Kraft's bid. Kraft went public Mon with a cash and stock bid for Cadbury which had already rebuffed the advance in private. The offer was a 31% premium to its closing share price on Fri, but Cadbury said it fundamentally undervalues the company. For Kraft CEO Irene Rosenfeld, the deal would expand the company's reach and put its Oreo cookes and Velveeta cheese next to Cadbury's chocolate bars and Trident gun under the sam roof and would rival Mars which last year bought Wrigley. Here are the top five companies' shares of the global confectionary market according to the article: Mars 14.8%; Cadbury 0.3%, Nestle 7.6%, Hershey 4.8%; and Kraft 4.5%.

Related story at WSJ pA17 "Kraft's Pursuit of Cadbury - Sugar and Spice: A Clash of Two Change Agents - CEOs of Both Companies have South to Turn Operations Around, One Through Adding Revenue, One by Cutting Costs" by David Kesmodel and Cecilie Rohwedder says the ceos of Kraft and Cadbury have been turning around their companies but don't see eye to eye. Kraft's Irene Rosenfeld has emhasized expanding revenue while Cadbury's Todd Sitzer has cut costs. After becoming CEO in '06, Rosenfeld encouraged the phrase "Let's get growing" as a rallying cry. Her 3 year turnaround plan has begun to bear bruit as its 2Q beat analysts' forecasts and Kraft raised its earnings forecast for the full year. She sold lackluster brands like Post cereals and Veryfine juices and restored the original amount of cheese in its flagship macaroni and cheese product. She was hired away from Pepsi's FritoLay North America unit where she became CEO in '04 after 20 years at Kraft.

Related story WSJ pC10 "Heard on the street - Kraft's Sweet Dreams of Cadbury" says Cadbury was right in rejecting kraft's offer because Kraft's premium of 31% values the business at just 13 times forecast '09 earnings before EBITA that is light compared with recent sector deals such as Mars paying 19 times Ebita for Weigley in '08.

Fin Times pA1 "Cadbury snubs Kraft offer - UK brand vows to fight for its idnependence" by Jenny Wiggins says Cadbury vowed to mount a vigoous figh to retain its independence. Cadbury's brands include Flake and Wispa chocolate bars as well as Trident and Bubbaloo chewing gum. Related story at FT p14 in Lex Column that says Kraft's offer is a mere starting point but it is a good match up because the combiend group would be a significant force in Brazil, Russia nad India. It also says Kraft has clout with groces such as Walmart and Cadbury has clout with convenience stores and news agents.

Related story at FT p17 "Offer not quite sweet enough - Cadbury rejected Kraft's approach, but preserving its independence could prove difficult" by Jenny Wiggins quoting analysts who says Kraft's bid materially undervalues Cadbury. Related article same page "Hunt is on for growth outside saturated North America market" by Jonathan Birchall & Julie Macintosh that says from Ritz crackers to Jell-O and Oreo cookes to Maxwell House, Kraft's packaged food brands may be found in more than 99% of US households with more than $40bn in annual sales, Kraft is the largest US food company, globally second only to Switzerland's Nestle since Joseph Kraft opened his wholesale cheese business in Chicago in 1903.

Similar theme at NYT pB1 "Rebuff by Cadbury Doesn't Deter Kraft" by Julia Werdigier" that says shares of Cadbury soared 41% in London indicating that investors expected a higher bid from Kraft or a rival such as Nestle or Hershey. Some say Cadbury could be worth as much as 43% more than Kraft offered.

NYT pB1 "Signs of an Upswing in Merger Activity" by Michael J. de la Merced says Kraft's hostile bid for Cadbury is only the latest potential blockbuster deal in recent days after Disney's deal for Marvely and eBay's sale of Skype but the pace of deal making is looking up.

Related story NYT pB6 "Kraft's Bid for Cadbury Propels European Stocks" says led by Britain, markets rise on hopes for more general activity in mergers.

USA Today p1B in its Kraft story notes that Kraft makes Kool-Aid.

MCD $56.07 +0.50 0.9% 4,487,875 NYSE: No mentions found.

MRK $30.67 +0.43 1.42% 11,201,962 NYSE: No mentions found.

Microsoft MSFT $24.62 +0.51 2.12% 44,540,083 NASDAQ-GS: WSJ pB1 "Group of Microsoft Rivals Nears Patent Deal in Bid to Protect Linux" by Nick Wingield says MSFT has said that companies using the Linux operating system may be violating Microsoft patents. Now a goup of Microsoft rivals is about to acquire a set of patents formerly owned by MSFT to avert any legal threat. Linux is a free open source oeprating system and some say it is more secure than Windows. The group includes major supporters of open source software including IBM and will get 22 patents that MSFT sold earlier this year to Allied Security Trust whose members include Verizon Communications, Cisco and Hewlett-Packard. The new group is called the Open Invention Network.

WSJ pB7 an article by Sarah E. Needleman says Microsoft & Verizon among others are placing job openings on Twitter.

Pfizer PFE $16.39 +0.31 1.93% 26,390,467 NYSE: IBD pA9 "Record Pfizer Penalty No Bid Geal on Street - Analysts Saw It coming - Even so, oversight over how drugs are marketed may grow ore intense" by Vance Cariaga says ther ecord penalty assessed to Pfizer last week for unlawful prescription drug promotions had a muted reaction on Wall Street. The $2.3 bil civil and criminal penalty against the world's beiggest drugmaker ha dlittle impact on Pfe's stock price.

PG $52.86 -0.01 0.02% 6,860,355 NYSE: No mentions found.

MMM $71.25 +0.23 0.32% 2,113,237 NYSE: No mentions found.

TRV $50.07 +0.15 0.3% 2,728,790 NYSE: No mentions found.

UTX $60.48 +0.83 1.39% 3,230,257 NYSE: No mentions found.

Verizon VZ $30.57 +0.33 1.09% 6,921,380 NYSE: WSJ pB1 "Group of Microsoft Rivals Nears Patent Deal in Bid to Protect Linux" by Nick Wingield says MSFT has said that companies using the Linux operating system may be violating Microsoft patents. Now a group of Microsoft rivals is about to acquire a set of patents formerly owned by MSFT to avert any legal threat. Linux is a free open source oeprating system and some say it is more secure than Windows. The group includes major supporters of open source software including IBM and will get 22 patents that MSFT sold earlier this year to Allied Security Trust whose members include Verizon Communications, Cisco and Hewlett-Packard. The new group is called the Open Invention Network.

WSJ pB7 an article by Sarah E. Needleman says Microsoft & Verizon among others are placing job openings on Twitter.

WalMart WMT $51.64 -0.10 0.19% 12,819,484 NYSE: "Kraft/Cadbury" at FT p14 in Lex Column that says Kraft's offer is a mere starting point but it is a good match up because the combiend group would be a significant force in Brazil, Russia nad India. It also says Kraft has clout with groces such as Walmart and Cadbury has clout with convenience stores and newsagents.No mentions found.

Here are the latest SEC filings as of 9/4/09 other than ownership filings and, except for certain cases, I do not include third party shareholder proposals:

Symbol & Co. Name/Date of Filing/Form Filed/ Comments

T AT&T: 8/28/09 two 8K's, one: annoucning it had reached agreement with the Communications Workers of America (on a new, three-year contract covering approximately 7,000 wireline employees (located across the U.S.) under the CWA Communications and Technologies contract, subject to approval by these employees. The second 8K said two subsidiaries of Tprovided redeemed certain long-term debt issues as of September 28, 2009.

Alcoa AA: 8/29/09 8K announcing that Alain J. P. Belda, executive Chairman of the Board of Directors of AA retired as an executive officer but is staying on as a director until April 23, 2010.

American Express AXP: 9/2/09 10Q

Bank of Am BAC: a free writing prospectus regarding issuance of $74 million in debt securities.

Boeing BA: 8/31 8K announcing the retirement of Scott E. Carson, Executive Vice President, President and Chief Executive Officer, Boeing Commercial Airplanes, effective January 1, 2010. Effective September 1, 2009, Mr. Carson will leave his current position and assume the role of Executive Vice President. Carson will be replaced by James F. Albaugh.

8/27 8K announcing a revised schedule for the 787 Dreamliner and a charge to third quarter earnings related to flight test aircraft.

Caterpiller CAT: 8/20/09 8K CAT filed Reg FD information concerning deliveries to users for its Machinery and Engines lines of business.

Chevron CVX: 8/6/09 10Q

Cisco CSCO: 8/5/09 8K CSCO reported its results of operations for its fiscal fourth quarter and fiscal year 2009 ended July 25, 2009.

Coke KO: 7/30/09 10Q

Disney DIS: 8/31/09 8K announcing a merger between its subsidiary, Maverick Acquisition Sub, Inc., and its subsidiary, Maverick Merger Sub, LLC, a single member Delaware limited liability company and Marvel Entertainment, Inc.. As a result of the Merger, Marvel will become a wholly owned subsidiary of Disney. Each share of Marvel common stock will be converted into $30 in cash and 0.7452 shares of Disney common stock.

DuPont DD: 8/13/09 8K announcing Nicholas C. Fanandakis, age 53, Senior Vice President & Chief Financial Officer & Chief Executive effective September 1, 2009 with an increase in annual salary from $387,708 to $500,000 and target short-term incentive award for 2009 will increase from $328,500 to $464,100. Mr. Fanandakis was named to his current position, Group Vice President- Applied BioSciences, in January 2008. Prior to that, he was vice president and general manager- DuPont Chemical Solutions Enterprise from September 2003 through September 2006 and vice president- Corporate Plans from October 2006 through December 2007. Jeffrey L. Keefer, EVP and Chief Financial Officer, will remain EVP and transition from the position of Chief Financial Officer to assume leadership responsibility for the DD's Performance Coatings business, corporate strategy development, Information Technology and overall cost and working capital productivity efforts effective November 1, 2009. Richard R. Goodmanson, EVP and Chief Operating Officer will retire effective September 30, 2009.

ExxonMobil XOM: 8/5/09 10Q

GE: 8/4/09 8K GE reached a settlement with the SEC & consented to a judgment of a fine of $50 million relating to four accounting matters arising in 2002 - 2003: the application of SFAS 133 to GE’s since-discontinued commercial paper hedging program and, separately, to certain swap derivatives where fees were paid or received at inception; a change in accounting for profits on spare parts in the commercial aviation engine business; and certain year-end transactions in the Rail business.

Hewlett-Packard HPQ: 8/18/09 8K re: release of 731/09 3Q results

Home Depot HD: 8/26 8K announcing amendments to their By-Laws dealing with resignations of directors.

Intel INTC: 9/2/09 8K announcing that as a result of stronger than expected demand for microprocessors and chipsets, Intel now expects revenue for the third quarter to be $9.0 billion, plus or minus $200 million, as compared to the previous range of $8.5 billion, plus or minus $400 million. The gross margin percentage for the third quarter is expected to be in the upper half of the previous range of 53 percent, plus or minus two percentage points. The company is scheduled to report its third-quarter financial results on Oct. 13.

IBM: 7/28/09 10Q

JPMorganChase JPM: 9/2/09 Free Writing Prospectus relating to Core commodity C-IGAR Sigma Long-Short Index

Johnson & Johnson JNJ: 8/4/09 10Q

Kraft KFT: 8/5/09 10Q

McDonalds MCD: 8/11/09 re: press release "McDonald’s Reports Global Comparable Sales Up 4.3% in July"

Merck MRK: 8/3/09 Sched 14A proxy material re: updated of acquisition of Schering-Plough

Microsoft MSFT: 8/24/09 S-8 Securities to be offered to employees in employee benefit plans

Pfizer PFE: 9/2/09 8K announcing an agreement with the U.S. Department of Justice to settle an investigation regarding off-label promotional practices related to Bextra, which Pfizer withdrew from the market in 2005 and other DOJ investigations involving off-label promotional practices concerning Zyvox, Geodon and Lyrica, and allegations related to payments to healthcare professionals involving these and nine other Pfizer medicines. Pfizer previously disclosed a related $2.3 billion charge to its fourth-quarter and full-year 2008 earnings in connection with the DOJ agreement in principle on January 26, 2009. PFE has reached agreements with attorneys general in 432 states to settle state civil consumer protection allegations regarding promotional practices concerning Geodon. PFE will pay a total of $33 million to the settling states.

Procter & Gamble PG: 8/28/09 S-8 Securities to employees and 8/28 8K annoucning public offering of $500,000,000 aggregate principal amount of 3.150% Notes due 2015.
Also a PG subsidiary, Procter & Gamble International Funding SCA issued $1,000,000,000 aggregate principal amount of 1.350% Notes due 2011.

3M MMM: 8/5/09 3M contributed 8,329,862 shares of its common stock with a corresponding dollar value of approximately $600 million to its defined benefit pension plan, the 3M Employee Retirement Income Plan, made from treasury stock.

Travelers TRV: 8/5/09 10Q/A Amended 10Q

United Technologies UTX: 7/24/09 10Q

Verizon Communications Inc. VZ: 9/2/09: 8K annoucning retirement of Dennis F. Strigl, President and Chief Operating Officer of Verizon Communications Inc. (at end of '09 and also VZ raised its quarterly dividend 3.3% to 47.5 Cents per share. This is the third consecutive year that VZ has approved a quarterly dividend increase in September.

Wal-Mart WMT: 8/13/09 8K re 7/31/09 2Q report of earnings

Here are the CEOs of the Dow 30 Companies:

T Randall L. Stephenson
AA Klaus Kleinfeld
AXP Kenneth I. Chenault
BAC Kenneth D. Lewis
BA W. James McNerney, Jr.
CAT James W. Owens
CVX David O'Reilly
CSCO John Chambers
KO Muhtar Kent
DIS Rogert Iger
DD Nicholas C. Fanandakis replaces Ellen Kullman 9/1/09
XOM Rex W. Tillerson
GE Jeffrey R. Immelt
HPQ Mark Hurd
HD Frank Blake
INTC Paul S. Otellini
IBM Samuel J. Palmisano
JPM Jamie Dimon
JNJ William C. Weldon
KFT Irene Rosenfeld
MCD Jim Skinner
MRK Robert Clark
MSFT Steve Ballmer
PFE Jeffrey Kindler
PG Bob McDonald
MMM George W. Buckley
TRV Jay S. Fishman
UTX Louis Chenevert
VZ Ivan Seidenberg
WMT Mike Duke