Cadbury sweetened by bid battle
Monday November 23 2009
Cadbury shares hit a fresh two-year high on hopes of a takeover tussle as reports suggested Swiss food group Nestle is considering entering the fray.
Kit Kat and Aero maker Nestle is said to be considering its options, which could see it put forward an offer to rival the hostile £9.8 billion bid from US giant Kraft.
Hershey, the American chocolate firm, and Italy's Ferrero have already confirmed they are looking at their options amid mounting excitement over a bid contest for the Dairy Milk maker.
Shares in the British blue chip raced more than 2% to their highest level yet since the Kraft takeover saga began, taking the stock to levels not seen since June 2007.
Kraft is also thought to be prepared to up its offer or increase the cash element if rival bids emerge.
Dairy Milk maker Cadbury was reported to be taking a tough stance on any approaches, with weekend reports suggesting it would reject a £10.3 billion bid from Hershey.
Cadbury, which has already described a hostile £9.8 billion offer from Oreos and Toblerone maker Kraft as "derisory", is thought to be adamant that there would be no deal unless a much higher bid is tabled.
But interest from Nestle could bolster takeover efforts and prompt counterbids.
Nestle already owns Rowntree after a takeover in 1988 and is the group behind a raft of well-known household names, including Shredded Wheat and Nescafe.
It employs almost 7,000 people across 23 sites in the UK and Ireland and claims that around 95% of households in the UK consume its products.
Press Association
