Franklin fund bought into Cadbury hoping for buyout deal

franklin-fund-bought-into-cadbury-hoping-for-buyout-deal
franklin-fund-bought-into-cadbury-hoping-for-buyout-deal

Some of the money managers at fund and money management firm Franklin Resources (BEN) must be clairvoyant. They bought Cadbury (CBY) shares before Kraft (KFT) made its buyout offer for the U.K. company. Franklin now owns at least 7.2% of Cadbury's shares.

Speaking at a conference in Vienna, Franklin fund manager Anne Gudefin, whose Mutual Global Discovery Fund holds the Cadbury shares, said "We have an idea" of a bid price for Cadbury that would be acceptable, according to a report from Bloomberg. Franklin bought a lot of the stock at below 550 pence per share. Cadbury closed trading Friday at 758 pence. A better bid from Kraft could take the shares higher.