Cadbury keen on Hershey as a bid battle with Kraft looms
A BID battle looks set to break out for takeover target Cadbury after it emerged Hershey had lined up £4bn for a possible approach and Cadbury’s boss said the UK firm may fit well with the US chocolate giant.
Hershey, known for its Hershey bars and Kisses in the US, is understood to have lined up bank loans to finance a £10.3bn offer for Cadbury.
Cadbury is facing a hostile £9.8bn takeover approach from Dairylea cheese group Kraft, which is due to send details of its offer to Cadbury shareholders by 7 December.
Most other big players in the worldwide confectionery industry, including Italy’s Ferrero and Swiss Nestle, are also thought to be mulling bids.
Hershey, which is reviewing options on Cadbury, was unavailable to comment and Cadbury declined to say anything.
In a weekend newspaper interview, Cadbury’s chief executive Todd Stitzer said the Birmingham-based chocolate firm shared “a lot of cultural similarity” with Hershey.
In September, Cadbury rejected a cash-and-shares merger with Kraft valuing the business at £10.2bn. Kraft tabled an official cash-and-shares bid of £9.9bn earlier this month.