Both companies have been linked to bids for the confectionery company in recent weeks. Reports have suggested that Hershey will come with a price tag in the region of 拢6.8bn-拢7.8bn.
The two companies, if successful, would win control of the Hershey bar brands as well as Reese Peanut Butter Cups.
However, opposition in the US to the sale of the trust-controlled company is growing. A Pennsylvania court will tomorrow hear a plea from the state's attorney general seeking to halt a sale.
Local people in the town of Hershey -- known as the town that was built on chocolate -- plan demonstrations and other types of protest to show their opposition to the sale of the company, which pours millions of dollars into the local area, including its schools.
Cadbury already works closely with the US firm, which manufactures Cadbury products such as the Fruit & Nut bar, Creme Eggs, and Cadbury's Caramel and Dairy Milk bars for the US market. As well as the Cadbury brands, Hershey licenses Nestle's Rolo and Kit Kat brands.
Another option for Cadbury would be for it to try to win control of its brands in the US, which would save it from having to enter into a costly takeover battle.
This would also lend weight to a Nestle bid. Last week, there was talk of anti-trust problems in a Nestle bid for Hershey. However, if some Hershey licensed brands reverted to Cadbury, this would weaken calls for anti-trust investigations into a bid by the Swiss food giant.
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