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| Hershey considers rival Cadbury bid: report |
| AFP/ PTI / New York Sep 08, 2009, 15:33 IST |
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US chocolate maker Hershey could jump into a takeover battle with a bid for Cadbury after the British confectioner rejected an offer from food giant Kraft Foods, the Wall Street Journal said today.
The Pennsylvania-based company "is likely to make some response" to Kraft's Monday bid, the financial daily said, citing a source close to the matter.
Hershey's potential bid rises from awareness "that Cadbury is the last major confectionery company potentially available", said the person familiar with the situation according to the financial daily.
In comparison to Kraft, Hershey's position in the market is diminutive -- its annual turnover of some $5 billion is eight times smaller than the food giant.
However, the Journal noted, Hershey and Cadbury have a long working relationship, having talked about combinations in the past. The firm also distributes the iconic British confectioner's products in the United States.
On Monday, Kraft Foods's $16.7 billion (10.2 billion pound) bid was spurned by Cadbury, though Kraft said it hoped the British group would eventually jump on board.
Cadbury's share price, however, surged on the news and ended the day with a gain of 37.85 per cent at 783 pence.
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