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Ferrero in possible Cadbury bid | |
(29 minutes later) | |
Italian confectionery group Ferrero has confirmed it is "evaluating" a possible takeover offer for the UK's Cadbury. | |
Ferrero said it was in the "preliminary stages" of looking at its options. | |
Its comments follow reports Ferrero may team up with US chocolate group Hershey to bid for Cadbury, a move that could forestall a hostile bid by Kraft Foods. | |
Cadbury has declined to comment on the speculation of a joint Ferrero and Hershey bid. Earlier this month, it rejected US group Kraft's £9.8bn offer. | |
Ferrero did not mention Hershey in its statement. | |
Confectionery giant | Confectionery giant |
Analysts agreed that it was unlikely that either Hershey or Ferrero - which makes Ferrero Rocher chocolates - could fund a takeover of Cadbury on their own. | |
CADBURY John Cadbury, a Quaker, opened shop in Birmingham in 1824, selling tea, coffee and hot chocolate - as an alternative to alcohol Dairy Milk brand introduced in 1905, with Milk Tray coming 10 years laterMerged with Schweppes drinks business in 1969. Its drinks arm was spun off in 2008Employs about 45,000 people in 60 countries Check Cadbury's share price | CADBURY John Cadbury, a Quaker, opened shop in Birmingham in 1824, selling tea, coffee and hot chocolate - as an alternative to alcohol Dairy Milk brand introduced in 1905, with Milk Tray coming 10 years laterMerged with Schweppes drinks business in 1969. Its drinks arm was spun off in 2008Employs about 45,000 people in 60 countries Check Cadbury's share price |
"It doesn't appear that either Ferrero or Hershey is in the financial position of taking on Cadbury all by themselves," said Erin Swanson, an equity analyst with Morningstar. | "It doesn't appear that either Ferrero or Hershey is in the financial position of taking on Cadbury all by themselves," said Erin Swanson, an equity analyst with Morningstar. |
Other commentators have speculated that Cadbury may prefer to join with Hershey and Ferrero, as both are also predominantly confectionery companies, unlike Kraft which has a much wider food offering. | Other commentators have speculated that Cadbury may prefer to join with Hershey and Ferrero, as both are also predominantly confectionery companies, unlike Kraft which has a much wider food offering. |
Cadbury is the world's second-largest confectionery business, with full-year revenues of £5.4bn in 2008. It described Kraft's hostile offer as "derisory". | Cadbury is the world's second-largest confectionery business, with full-year revenues of £5.4bn in 2008. It described Kraft's hostile offer as "derisory". |
Shares in Cadbury were up 1.3% or 10.5 pence to 798.5p in early afternoon trading. |