Hershey, Ferrero consider bid for Cadbury
November 18, 2009
In separate released statements, Italy''s Ferrero and U.S.-based Hershey Co confirmed they are considering a bid for Cadbury, after being asked by the UK Takeover Panel to clarify their intentions, reports Reuters. They gave no assurance they would make an actual bid for the company. Hostile bidder Kraft Foods is still seen as the front-runner with its $16.8 billion offer. The Ferrero and Hershey statements gave no hint that they might be working together on a joint bid. Analysts and investors doubt the two could rival the hostile cash-and-share offer from Kraft, though Cadbury could use interest from Hershey and Ferrero to extract a higher bid from Kraft. A Kraft spokeswoman said the Oreo cookie and Velveeta cheese maker stood by its own offer, but declined to comment further on the company''s strategy.