Hershey has been in talks with credit-ratings companies in recent days about how to structure an offer without hurting its investment-grade debt rating, Bloomberg reports, citing people with knowledge of the matter. Hershey also has been drafting commitment letters with its lenders to secure a multibillion-dollar loan package.
Kraft has until Tuesday to raise its current offer of 762 pence a share while Hershey has another four days until Jan. 23 to make a decision to bid. A higher offer by Kraft may lead Hershey to conclude a bid is above its reach, the sources said, Bloomberg reports.
Cadbury Chairman Roger Carr confirmed in a conference call Thursday that Hershey recently reaffirmed its interest in the U.K. confectionary maker.Cadbury's board, led by CEO Todd Stitzer and Hershey, headed by CEO David West, have discussed a combination, says Bloomberg. Kraft's hostile offer for Cadbury is valued at about $17 billion. Follow TheStreet.com on Twitter and become a fan on Facebook.