London: The charitable trust that controls US chocolate maker Hershey has approached the Pennsylvania Attorney General for a potential USD 17 billion bid for Cadbury, says a media report.
The Milton Hershey School Trust, which has been overseeing Hershey Co, has informed Pennsylvania Attorney General Tom Corbett about its interest in the UK confectioner, British daily The Financial Times said.
However, the Trust has given no details of the proposed
offer, FT added.
FT quoted Corbett's spokesman as saying that the
attorney general's office had been informed by the Trust that
Hershey was considering buying out Cadbury but it had not sent
any proposals.
"We will monitor any transaction to ensure that the
assets and mission of the Milton Hershey School Trust are
protected and preserved," Corbett's spokesman was quoted as
saying.
As per Pennsylvania law, the state attorney general has
broad powers to regulate charitable trusts in the state— a law
that has been interpreted to allow the attorney general to
block any transactions that would threaten the Trust's control
of Hershey.
"The need for the attorney-general's approval has been
seen as constraining Hershey's ability to issue stock that
could dilute the Trust's voting control," the daily said.
PTI
First Published: Thursday, November 26, 2009, 21:04