MILAN (Reuters) - Italian chocolate maker Ferrero could be interested in Cadbury's gum and candy division, a unit worth about 5 billion euros ($7.4 billion), in a possible joint takeover bid, business daily Il Sole 24 Ore said on Friday.
US chocolate maker Hershey and Ferrero of Italy said on Wednesday they were mulling a potential counter-bid for British confectioner Cadbury, the object of a hostile offer from Kraft Foods.The news could remould the chocolate-making sector with a takeover costing more than 10.0 billion pounds (11.2 billion euros, 16.8 billion dollars).The Wall Street Journal, citing unnamed sources familiar with the matter, had reported on Tuesday that Ferrero was in talks with Hershey over a potential joint bid.
Italian chocolate maker Ferrero on Monday said it did not intend making a counter-bid for British confectioner Cadbury, which last week agreed to a multi-billion-dollar takeover from US giant Kraft Foods."Ferrero International SA confirms that it does not intend to make an offer for Cadbury," the group said in a short statement to the London Stock Exchange.US chocolate maker Hershey had on Friday also ruled out a counter-bid after reports suggested that it was weighing up a joint offer with Ferrero.
US chocolate maker Hershey has launched talks with Italian-based Ferrero on a joint bid for Britain's Cadbury, the object of a hostile takeover effort from Kraft Foods, the Wall Street Journal reported Tuesday.The Journal, citing unnamed sources familiar with the matter, said talks between executives at Hershey and Ferrero had not yet produced an offer.The discussions, in preliminary stages, were being held up by a dispute on Cadbury's higher-margin gum and candy businesses, the daily said.
US chocolate maker Hershey and Ferrero of Italy said on Wednesday they were mulling a potential counter-bid for British confectioner Cadbury, the object of a hostile offer from Kraft Foods.The jostling for position could herald a big change in the world of choclate confectionary, with a price ticket above 10.0 billion pounds.The Wall Street Journal, citing unnamed sources familiar with the matter, had reported on Tuesday that Ferrero was in talks with Hershey over a potential joint bid.
One of Britain's most revered companies is under threat of a takeover. Candy maker Cadbury already rejected a hostile takeover bid by U.S. giant Kraft Foods. Hershey has confirmed it is considering a joint takeover bid for Cadbury, along with Italian chocolate maker Ferrero. But it seems the offers may need to be considerably sweetened to persuade the British.
Italy's Ferrero has lined up 4.5 billion euros from two leading banks to help finance its joint takeover offer with Hershey for British confectioner Cadbury, Il Sole 24 Ore reported Tuesday.Mediobanca will provide 1.5 billion euros (2.2 billion dollars) and UniCredit 3.0 billion, the financial daily said.Hershey plans to borrow another 7.0 billion dollars (4.8 billion euros) for the operation, Il Sole said.
Confectionery maker Cadbury, the British brand home to Dairy Milk chocolate and Trident chewing gum, has refused a takeover bid by US food giant Kraft Foods, who offered 11.7 billion euros to buy the company.
Kraft Foods Inc. on Monday proposed $16.7 billion takeover of Cadbury PLC, but the offer was immediately rejected by the British maker of chocolate, gum and candy. Cadbury said the offer undervalued the company. Despite the rejection, Kraft said it would continue to seek a transaction that Cadbury's board could support.