Cadbury Shares Soar as Trio Prepare to Enter Bid Battle
Sunday, November 29, 2009 2:33Shares in Cadbury shot to an all-time high amid hopes that a bidding war is about to erupt for the maker of Dairy Milk and Green & Blacks.
A trio of the world’s biggest confectioners is understood to be considering trumping a £9.9bn offer tabled by Toblerone and Milka owner Kraft—an approach dismissed out of hand by Cadbury. It has emerged that US chocolate giant Hershey is now working on plans to launch a £10.3bn bid for the iconic British firm.
Kit Kat and Aero-maker Nestle is also understood to be weighing its options as it prepares for a potentially seismic shift in the global confectionery market. And Italy’s Ferrero is also confirmed as a potential counter bidder.
Cadbury investors have been waiting for a ‘white knight’ to emerge ever since Kraft tabled its 717p-a-share cash-and –paper offer last month, which Cadbury chairman Roger Carrlabelled as ‘derisory’.
But now the prospect for an epic takeover struggle is gathering momentum with Hershey apparently stepping up its interest in its British rival.
The US group is said to be working on a bid of as much as £10.3bn, comprising £6.1bn in cash and £1.2bn in shares plus a cash injection of up to £3bn from Hershey’s American investors.
The news sent shares in Cadbury soaring to 13.5p to 814p on hopes that Kraft will now be forced into sweetening its offer. However, City analysts questioned whether Hershey can realize a dream of a union with Cadbury, notwithstanding its US distribution alliance with the British firm.
Related posts:
- Cadbury Hits a High on Hershey Talk
Shares in Cadbury shot to a record high on Tuesday... - Ferrero Unwraps Plan for $4.5bn Loan to Join Cadbury Bid Party
Ferrero moved a step closer to gatecrashing the £10.5 billion... - Kraft Set to Raise Cadbury Bid
Kraft is drawing up plans to raise its £10.3bn hostile... - British Land Shares Soar on Takeover Talk
A group of Indian and Gulf investors has approached Credit... - Fears for Cadbury Jobs, Despite Food Giant’s Vow
American food giant Kraft has renewed its pledge to save...
