>It /should/ be a no-brainer; Ferrari /should/ be making vastly
> more money than Fiat will ever own. So...???

The more people there are that think like that, the easier it is for me 
to make money!  Here, let me give you my precious expensive Ferrari 
company, and in return you give me all your cheapo Fiat factories and 
brands :-)  Sound like a good deal to you? OK let's go!

> My question was more "how the hell can they afford that?"

The real question is, will Kraft be able to get more value from Cadbury 
than everyone else thought?  If not, then it was a waste of money to buy 
them, but if Kraft can do something with the company to make it more 
valuable (restructuring, new products, whatever) then it was a good buy. 
  Only time will tell.

> I'm just trying to visualise the conversation though: "Yeah, we can sell


> that wouldn't be laughable.

That's exactly how it works (maybe not as extreme difference in price, 
and the company will print the packaging/label too).  The supermarkets 
know that consumers want to buy expensive Kellogs cereal and cheap 
own-brand stuff, it will work out better (=more profit) for the 
supermarkets and the suppliers (Kellogs) if they supply both products, 
given how similar they are.

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