Is Ferrero out of the Cadbury picture?
Italian confectionery giant Ferrero is said to have ruled out a potential offer for UK competitor Cadbury. There were hopes that the company would team up with US outfit Hershey and present a "white knight" offer to the Cadbury board to head off the onslaught from Kraft Foods. While the rumours regarding Ferrero dropping out of the bidding have yet to be officially confirmed, those close to the company have indicated that this is the current stance.
Even though Hershey seems very determined to get involved with Cadbury in some shape or form, many believe that the company is not strong enough in its own right to muster the finance required to table a bid. Whether a new potential partner emerges from the shadows remains to be seen but the cautious yet optimistic approach from Kraft Foods appears to be playing out perfectly at this point in time.
The company currently has a £10.5 billion offer on the table which is significantly below the Cadbury share price and unlikely to be successful. However, analysts believe that a bid in the region of £8 to £8.50 would stand an excellent chance of being successful and we await further developments in due course.
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