Cadbury plays tough with potential Hershey takeover bid
The weekends press is full of speculation regarding the future of Cadbury but one thing is for sure, according to informed sources, the Cadbury directors would be unwilling to accept an offer of £10.3 billion from US outfit Hershey. Many people believe that Hershey could well be the "white knight" which Cadbury has been looking for although the rumoured £10.3 billion offer would not appear to fit the bill as far as Cadbury directors are concerned.
While at the moment this is all hearsay and speculation there is no doubt that the heat is now being turned up on the UK outfit with more and more researchers and analysts believing its days as an independent company are numbered. However, with the Cadbury share price now approaching eight pound and the Kraft Foods offer well below this, and the potential Hershey offer also well below this level, there would appear to be a long way to go yet before we know exactly what will happen.
We can only imagine how difficult it may have been for the potential Cadbury suitors to arrange the necessary finance in these very difficult and very unsettling economic times. However, there does appear to be banking support for a bid for Cadbury although the details of the full costs have yet to emerge.
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