Ferrero, Hershey Mull Cadbury Bid Possibilities - Sources
By Sabrina Cohen, Of DOW JONES NEWSWIRES
MILAN -(Dow Jones)- Talks between Italian candy-to-chocolate maker Ferrero
International SA and Hershey Co (HSY) of the U.S. on making a joint bid for U.K.
confectioner Cadbury (CBY) are ongoing, people with knowledge of the situation
told Dow Jones Newswires Friday.
"This is a developing story and all the details are under discussion at the
moment," the people said, adding that the companies are working on a "friendly
offer."
Ferrero and Hershey are still deciding whether to make an offer for the whole
of Cadbury or whether to take a large stake in the company, which would block a
takeover by Kraft Foods Inc. (KFT), the people said.
Ferrero has well over EUR2 billion in cash available for the Cadbury offer and
the option of making an all-cash offer for a stake in Cadbury hasn't been
excluded, the same people said, noting that nothing has been decided yet.
Ferrero's advisors value the Italian company's share of any deal at over EUR5
billion, they added.
Italian bank Mediobanca (MB.MI) and Rothschild are advisors on the potential
deal, and are working on a plan that could split Cadbury's chocolate and gum
businesses, another person involved in the talks said. Both Ferrero and Hershey
are interested in Cadbury's chocolate operations, the person added.
Cadbury earlier this month rejected an hostile cash and shares takeover from
Kraft, which currently values the British company at GBP9.9 billion, or 723
pence a share.
-By Sabrina Cohen, Dow Jones Newswires, +39 02 5821 9906; sabrina.cohen@
dowjones.com
(END) Dow Jones Newswires
11-20-090401ET
Copyright (c) 2009 Dow Jones & Company, Inc.
|