Is Hershey talking to Nestlé regarding Cadbury offer?
There is speculation in the weekend press that American outfit Hershey is looking to tie-up with Nestlé in a potential consortium bid for Cadbury. While there has been much speculation about the future of Cadbury, with Kraft Foods and the only company to put down a firm offer as yet, the name Nestlé is a new entry to the saga which is now set to come to boiling point in the short term.
It is believed that by using the financial strength of Nestlé, Hershey would be able to increase any cash element if a bid is forthcoming and potentially share the spoils with Nestlé. It is well known within the City that Hershey is the preferred bidder of the Cadbury board even though Cadbury is twice the size of Hershey. Whether there would be potential competition issues if Nestlé was to enter the fray is open to debate because the company has a massive exposure to the worldwide confectionery market, including the UK.
It would appear that slowly but surely, Cadbury's days of independence may well be coming to an end with more and more rumours circulating within the City and more companies looking to step forward with potential offers.
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