|
| Hershey in touch with Nestle for Cadbury bid |
| Bloomberg / Dec 06, 2009, 00:11 IST |
|
Hershey Co, exploring its options for a possible bid for Cadbury Plc, has been in contact with Nestle SA, said two people familiar with the talks. An agreement between Hershey and Nestle may not be reached, and Hershey would prefer to bid alone, said the people, who declined to be identified because the talks are private. Any offer would challenge an unsolicited $17-billion bid from Kraft Foods Inc.
Teaming up with Nestle would provide Hershey with more cash for an offer, said Christopher Growe, an analyst at Stifel Nicolaus & Co. A Kraft takeover of Cadbury, the owner of Dairy Milk chocolate and Trident gum, would create the world’s largest maker of candy.
“Hershey is an uncompetitive bidder without a partner,” Growe said. He recommends selling Hershey shares and holding Kraft. Nina Backes, a spokeswoman for Vevey, Switzerland-based Nestle, declined to comment earlier yesterday when asked about Cadbury. Kirk Saville, a spokesman for Hershey, also declined to comment. Trevor Datson, a Cadbury spokesman, declined to comment on whether Cadbury has been approached by Hershey or Nestle.
Cadbury, which has traded above Kraft’s cash-and-stock offer since it was made, fell 5 pence to 795 pence in London trading yesterday. Northfield, Illinois-based Kraft rose 15 cents to $26.57 in New York Stock Exchange composite trading.
Kraft offer
Kraft, the maker of Oreo cookies and Toblerone chocolate, is offering 718 pence a share, based on that closing stock price and began its unsolicited tender offer for Cadbury yesterday.
Holders of London-based Cadbury have until January 5 to accept the offer, which is the same as a proposal outlined on September 7 and November 9, Kraft said in a statement. The company can extend the deadline, and has until February 2 to win over shareholders.
“We’re not going to engage in speculation on possible talks of others,” said Mike Mitchell, a Kraft spokesman, in an e-mail. “We’re the only offer on the table.” Cadbury has until December 18 to file a response arguing against a takeover or seeking a higher price. The company has called Kraft’s cash-and-stock offer an “unappealing prospect” from a “low-growth” conglomerate.
Hershey, the maker of Reese’s Peanut Butter Cups, said in a November 18 regulatory filing it was “reviewing its options.” Nestle is weighing options including a possible bid for Cadbury, two people with knowledge of the matter said last month.
|
|
|
|
|
|
|
|
|
|
 Read Business news in |  |
|
|
|
|
|
|
Advertisements |
|
|
|
|
|
|
|
|
|
|
Content Guide
