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.

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.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Cadbury 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.