New York: US chocolate maker Hershey could
jump into a takeover battle with a bid for Cadbury after the
British confectioner rejected an offer from food giant Kraft
Foods, the Wall Street Journal said on Tuesday.
The Pennsylvania-based company "is likely to make some response" to Kraft's Monday bid, the financial daily said, citing a source close to the matter.
Hershey's potential bid rises from awareness "that
Cadbury is the last major confectionery company potentially
available," said the person familiar with the situation
according to the financial daily.
In comparison to Kraft, Hershey's position in the market
is diminutive -- its annual turnover of some five billion
dollars is eight times smaller than the food giant.
However, the Journal noted, Hershey and Cadbury have a
long working relationship, having talked about combinations in
the past. The firm also distributes the iconic British
confectioner's products in the United States.
On Monday Kraft Foods's USD 16.7 billion
(10.2-billion-pound) bid was spurned by Cadbury, though Kraft
said it hoped the British group would eventually jump on
board.
Cadbury's share price however surged on the news and
ended the day with a gain of 37.85 per cent at 783 pence.
Bureau Report
First Published: Tuesday, September 08, 2009, 17:05