London: US confectioner Hershey Co is preparing a bid for British chocolate maker Cadbury, that will counter US-based Kraft Foods' 10.4 billion pound hostile offer, media reports says.
Quoting people familiar with the matter, the Financial Times said that "the charitable trust that controls Hershey is preparing a counter-bid to Kraft's hostile 10.4 billion pound offer for Cadbury."
A formal offer to this effect could be made within two weeks, the daily said citing sources.
A Hershey bid would be welcomed by Cadbury, which is resisting Kraft's approach.
"Although Cadbury has not solicited a 'white knight' bid from Hershey publicly, the confectioner has made clear that it would prefer Hershey to Kraft," FT said.
The charitable trust owns a third of Hershey's stock but controls 80 per cent of its shareholder votes.
PTI
First Published: Thursday, January 14, 2010, 18:51