Ferrero has refused to be drawn on market reports that the company has decided not to bid for Cadbury.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
According to UK reports, the family-owned Italian confectioner is said to have made up its mind not to move for Cadbury after weeks of talks between chairman Michele Ferrero and the company’s two co-CEOs, Mr Ferrero’s sons, Pietro and Giovanni Ferrero.
The elder Mr Ferrero is reported to have been reluctant to bid for Cadbury over concerns that a successful acquisition would place too much debt on the business.
Over the weekend, Ferrero was said to have lined up financing from banks in Italy for a solo bid. The Kinder egg maker had been linked to a joint offer for Cadbury alongside US chocolate giant Hershey.
Ferrero’s joint CEOs were said to have been keen to make an offer for the Dairy Milk maker but the company’s chairman appears to have won the argument.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataFerrero, which told just-food yesterday that it would make a decision in the coming days, declined to comment when contacted today.
A much-contested GBP10.5bn cash-and-shares bid from Kraft Foods remains the only offer on the table for Cadbury.
The UK confectioner’s management yesterday again derided the Kraft bid and urged its shareholders not to allow the US food giant to “steal” the business.
Cadbury also issued some financial numbers for 2009 and said underlying revenues had grown 5% during the year, climbing 6% rise in the second half of 2009. The company’s trading profit margin rose to 13.5% from 12%.
Cadbury also said it expects its full-year dividend to grow 10% in 2009, a year labelled as “outstanding” by CEO Todd Stitzer. The company will publish more detail on its 2009 performance tomorrow.
Shares in Cadbury were up 0.5% at 781p at 16:01 GMT this afternoon.
