New link for Cadbury
ITALIAN chocolate firm Ferrero and confectionery group Cadbury could be set to team up to fend off hostile bidder Kraft Foods.
According to Italian media reports yesterday family-owned Ferrero, maker of the iconic Ferrero Rocher chocolates, is believed to be considering an offer with “friendly investors” to form a merger with Cadbury, recipient of a hostile £9.8billion bid from US group Kraft earlier this month.
Both Cadbury, which rejected Kraft’s bid as “derisory”, and Ferrero refused to comment on the speculation. Cadbury’s shares rose 6dp to 788p. A n insider said Cadbury had yet to be contacted by Ferrero but added: “Cadbury is not up for sale but it would give proper consideration to any offer that valued it properly and would be of interest to shareholders.”
Alex Smith of Nomura said a deal could make sense for Cadbury and its shareholders: “This could prove a very creditable alternative to a raised Kraft offer. Investors may prefer to back this potentially more attractive story than sell now to one currently uncontested bidder. Cadbury’s chocolate presence would be boosted in Italy, Germany and France.”