Kraft, Hershey, Ferrero All Want To Take A Bite Out Of Cadbury

Cadbury is up for grabs, and as we have been following, it looks like like Hershey and Kraft Foods are hungry for a takeover.

Kraft has been at the center of the multi-billion struggle with no signs of giving up, though Nestlé is considering placing a rival bid for the chocolate company, which may incite a hostile reaction from Kraft. Regardless, Cadbury knows who the true power-players are:

Roger Carr, Cadbury’s chairman, indicated that a straight merger with Hershey would be preferable to a deal with Kraft. His rationale is that a deal with Hershey would deliver better value for its shareholders because both groups were focused on confectionery, while Kraft produces a variety of low-end processed foods.

Hershey is hedging its bets; the Pennsylvania-based brand is considering a joint bid with Ferrero, the maker of Ferrero Rocher (and, more familiar to US consumers, Nutella). Italian newspapers reported that Hershey execs would soon travel to Italy to meet Ferrero executives in the next few days.

Kraft still has its eyes on the prize, and plans to send its final bid within two weeks. Despite wanting to play with the big boys, Nestlé may not make a bid at all, and Cadbury is placing brand integrity at the forefront of any and all negotiations.

A Cadbury spokesman said: “We are focused on delivering value to shareholders as a standalone pure-play confectioner. We have always said that we would give proper consideration to any serious offer that delivers full value for the company. Unless and until we find ourselves in that situation, we have nothing to comment upon.”