The Board of Cadbury has reportedly spoken with members of the Hershey Board in attempt to coax a counterbid to the Kraft proposal, which Cadbury has consistently labelled as “derisory”. According to the Wall Street Journal, Cadbury has informed Hershey of the offer price that would draw their support – although their preference remains to operate as a standalone business. “Cadbury wants a friendly deal, a white knight as an option, so there are ongoing, back-channel talks,”... ...Read more »

Kraft Foods is a long way away from gaining control of UK-based confectioner Cadbury, with a release from the American manufacturer overnight showing that a mere 1.52% of Cadbury shareholders had accepted their November 9 offer. Kraft intends to keep the offer open until February 2 but is likely to have to materially raise the offer by a January 19 deadline if they want to wrest control. While many Cadbury shareholders will have chosen to ‘sit on the fence’ until this January 19 date,... ...Read more »

US chocolate giant Hershey has been in contact with Nestle over a possible joint bid for Cadbury, according to the latest reports on the ongoing saga. An offer between the two could challenge the hostile GBP10.2bn (A$18.2bn) bid currently on the table from Kraft Foods, Bloomberg reported. However, it is not certain that an agreement will be reached, with Hershey preferring to bid alone, a source told the publication. Industry analyst Nomura last week suggested that Nestle could buy back the Kit-Kat... ...Read more »

Nestle could buy back the Kit-Kat and Rolo brands in the US from Hershey, giving the US chocolate giant the power to fund a combination with Cadbury, according to one industry analyst. “We believe that there is compelling logic for both Nestle and Hershey to seek to structure an alternative to the current offer for Cadbury from Kraft,” analysts David Hayes, Alex Smith and Guillaume Delmas at Nomura said. “We estimate that Nestle has an opportunity to acquire the Kit-Kat brands in... ...Read more »

Kraft Foods remains the favourite to buy Cadbury, a leading industry analyst claimed today (1 December) even if US chocolate maker Hershey tables a bid for the Dairy Milk maker. Andrew Wood, senior research analyst covering European food companies at Sanford Bernstein, said Kraft was still the front-runner to buy Cadbury. Wood suggested, however, that a “likely” bid from Hershey – either on its own or alongside Ferrero or Nestle – would mean an acquisition of Cadbury would... ...Read more »

Cadbury has repeated that its board will look to get the best value for the UK confectioner’s shareholders after CEO Todd Stitzer praised potential bidder Hershey over the weekend. In an interview with the Financial Times, Stitzer highlighted the “values” of the Hershey business, comparing the history of the US chocolate maker to Cadbury’s own Quaker origins. The FT claimed that Stitzer had declared that Hershey would be a better fit with Cadbury than Kraft Foods, which has... ...Read more »

The Hershey Trust, the controlling shareholder of the US chocolate maker, has reportedly asked law makers in Pennsylvania to allow the company to potentially bid for Cadbury. According to the Wall Street Journal, the trust has approached Pennsylvania attorney general Tom Corbett to get his approval for any move it makes for the Dairy Milk maker. Sources familiar with the matter told the WSJ that, in recent weeks, at least one member of the trust’s board had approached Corbett to see if he would... ...Read more »

Cadbury has emphasised that value remains the key factor in any takeover bid for the UK confectioner after a weekend of growing speculation over the future of the business.Over the weekend, reports claimed that Hershey, the US chocolate maker, was mulling a solo bid for Cadbury, as well as still giving a joint approach with Ferrero consideration. Reuters, meanwhile, suggested that Kraft Foods, which has placed the only firm offer on the table for Cadbury, could raise its bid for the company if any... ...Read more »

Speculation is mounting that Nestlé will enter the race for Cadbury as Hershey looks to make an initial offer and Kraft considers raising theirs – which has been lambasted by Cadbury as “derisory”. Swiss-based Nestlé will be able to fund a bid, but whether they wish to take on a confectioner at a time when they are pushing their health and wellness credentials remains the big issue. They are also likely to come under greater scrutiny from competition authorities given their position... ...Read more »

US chocolate giant Hershey and Italian chocolatier Ferrero have confirmed their interest in buying UK confectioner Cadbury. In separate statements to the London Stock Exchange this morning (18 November), the two companies confirmed that they are each mulling a possible bid. The news follows reports that the pair were in preliminary talks for a joint bid to counter the GBP9.8bn (US$16.45bn) hostile offer already on the table from US food giant Kraft Foods. Neither company made mention of the other... ...Read more »