Hershey has authorised an offer 'after extensive internal debate' between the company and the charitable trust, and a formal bid could be made by a deadline set for 23 January, according to
Hershey licenses the Cadbury brand in the US and Cadbury's chairman Roger Carr has described it as "more appealing" than Kraft. However, the FT claims Hershey would have to offer a higher price than Kraft has yet done to win Cadbury's support.
Hershey had been in talks with Italian confectioner Ferrero about making a joint bid, but an unconfirmed report in Italian financial daily Il Sole 24 Ore yesterday claimed Ferrero had pulled out of talks.
United Biscuits this morning (14 January) refused to comment on a that it had been involved in the talks between Hershey and Ferrero. A spokesman said: "We don't comment on market speculation."
The Telegraph claims that private equity firm Blackstone, owner of United Biscuits, met with Ferrero and investment bank NM Rothschild to discuss a proposal that would have carved up Cadbury between the three parties, but talks broke down.
Under the proposal, United Biscuits, the maker of Penguin, Jaffa Cakes and Jacob's Crackers, would have obtained the UK operations, with Ferrero and Hershey taking the European and US operations respectively.
The Takeover Panel deadline for Kraft to raise its bid or walk away is on 19 January.
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