Speculation is circulating that US chocolate giant Hershey is preparing a counter-bid for Cadbury after the UK confectioner yesterday (7 September) rejected an offer from Kraft Foods.
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Hershey “is likely to make some response” to Kraft’s bid, the Wall Street Journal said, citing a source close to the matter.
According to the financial daily, Hershey’s potential bid rises from awareness “that Cadbury is the last major confectionery company potentially available”.
Hershey and Cadbury have a long working relationship, with the firm distributing the UK confectioner’s products in the US.
Officials at Hershey and its controlling shareholder The Hershey Trust could not be reached for comment yesterday.
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By GlobalDataCadbury yesterday rejected a GBP10.2bn (US$16.73bn) takeover bid from Kraft Foods, the US food group behind the Milka and Toblerone brands.
Kraft CEO Irene Rosenfeld said Kraft remained “optimistic” that in the weeks ahead, the value of its proposal will be realised.
“We feel quite good about this proposal and we are eager to move forward. We just need to let things settle down a bit.”
Rosenfeld told analysts the company sees opportunities in expanding distribution, in the ability to make further investments in marketing the equity of Cadbury’s “iconic” brands and in new product development.
“We hope to engage with the board of Cadbury on a constructive basis with the goal of consummating a recommended transaction.”
Cadbury’s share price surged on yesterday’s news and ended the day with a gain of 37.85% at 783 pence.
