The case discusses the takeover of UK-based Cadbury Plc (Cadbury) by US food maker Kraft Foods Inc. (Kraft). In February 2010. Cadbury accepted Kraft's £ 11.9 billion (US$19.7 billion) takeover offer after a battle that lasted more than 100 days. Earlier in 2009, the British chocolate maker rejected a £9.8-billion (US$ 16.4 billion) hostile takeover bid from Kraft saying that the bid did not reflect the true value of the Cadbury brand. With the protest and under some peculiar circumstances led to Cadbury accepting Kraft's offer. According to industry experts, globally, the combined group would be number one in the chocolate and confectionery segments and number two in the high growth gum segment. The deal caused substantial benefits to both Kraft and Cadbury. The deal is expected to provide revenue synergies to Kraft over time from investments in distribution, marketing, and product development. Answer the following question.
Q1. Explain the issues and challenges in Mergers and Acquisitions. particularly those involving a hostile takeover.