Hershey, Ferrero plot rival Cadbury bid
Hershey and Ferrero plan joint bid for Cadbury, which has rejected takeover from Kraft
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Hershey and Ferrero are reported to have held preliminary talks considering a joint bid for Cadbury.
The move could stall the hostile takeover bid by Kraft Foods, which was rejected earlier this month by the British confectioner.
US newspaper the Wall Street Journal claims Hershey spoke to banks about financing the takeover, and executives for both companies are said to have been in discussions for a number of weeks.
Cadbury chairman Roger Carr said at the time of the Kraft bid that the "offer does not come remotely close to reflecting the true value of our company, and involves the unattractive prospect of the absorption of Cadbury into a low growth conglomerate business model".
The reported discussions between confectioners Hershey and Ferrero are believed to be in the "preliminary stages" with talks on financial specifics not yet made, the Wall Street Journal reported.
Shares in Cadbury rose back above 800 pence for the first time in almost a month on the hopes Hershey and Ferrero would mount a bid.