New York, NY (

TheStreet

) --

Hershey

(HSY) - Get Report

investors are betting that the Reese's Peanut Butter Cups maker will default on its debt obligations over mounting speculation that it will try to outbid Kraft's offer for Cadbury.

Credit default swaps for Hershey have risen 14 basis points to 92 basis points - and, earlier, reached 100 basis points -- according to broker Phoenix Partners Group, reports Bloomberg.

The credit default swaps are being traded by speculators betting against the company's creditworthiness, and other investors as a protection or insurance for their investments as the company's risk profile increases.

Most Popular GE Valuation Gets Tricky

Most Commented Citigroup Worst of Bank Stocks: Poll

The five-year Hershey credit default swaps have been changing hands at their highest levels since mid-December of last year, says Bloomberg, citing CMA DataVision.

Meanwhile,

Cadbury

( CBY) shares have soared to five-year record highs, following reports of another bidder in addition to

Kraft

( KFT), Hershey and a possible Hershey-Ferrero joint-bid. The Swiss food giant

Nestlé

(NSRGY) - Get Report

is rumored to be another interested suitor.

Kraft has made a

$16.4 billion hostile bid

for Cadbury, but observers predict that it will ultimately raise its offer through pressure from the other interested parties.

Shares of Hershey have slid 1.4% to $36.38. Cadbury is trading up 2.2% at $53.98. Kraft is up 0.7% at $27.36.

-- Reported by Andrea Tse in New York

Follow TheStreet.com on

Twitter

and become a fan on

Facebook.

Copyright 2009 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.