Shares in Cadbury have risen to record levels, as interest from Nestlé SA, Hershey Co and Ferrero SpA look to turn Kraft’s attempted takeover into a bidding war.
By Chris Farnell
Nestlé is rumoured to be in discussions with its bankers, sources have revealed. This follows announcements last week that Hershey and Ferrero are also evaluating options.
Following news of a possible bidding war, Cadbury shares were up 9 pence, or 1.2 percent at 810 pence, the highest its shares have been since June 2007.
Were Kraft’s 9.8 billion pound hostile bid to be successful, it would create the largest candy manufacturer in the market, a threatening prospect for both Nestlé and Hershey. Kraft has so far steadfastly refused to improve on its initial offer for the company, but the threat of a rival bid could change that.
A SLAM DUNK
Talking about a possible Nestlé bid, analyst Jon Cox of Kepler Capital Markets, said: “If they wanted it, they’d have it, it’s a bit of a slam dunk. Nestlé has the financial resources.’’
However, it has been said that were Nestlé to make a successful bid for the company, the sizeable chunk of the market it held would attract the attention of regulatory bodies.
Nestlé, Hershey and Ferrero have so far declined to comment.
Edited by Jennifer Denby & Ian Armitage
SOURCE: http://www.nestle.com/