Hershey Confirms Mulling Cadbury Options - TheStreet

Hershey Confirms Mulling Cadbury Options

Hershey said in a statement there is no 'assurance that any proposal or offer from Hershey will be forthcoming' for Cadbury.
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Publish date:

Updated from 6:39 a.m.

HERSHEY, Pa. (

TheStreet

) --

Hershey

(HSY) - Get Report

confirmed Wednesday it is reviewing options regarding a potential offer for

Cadbury

(CBY)

.

In a statement to the London Stock Exchange, Hershey said "at this stage there can be no assurance that any proposal or offer from Hershey will be forthcoming. A further announcement will be made in due course if appropriate."

It was reported earlier that Hershey was in talks with banks to line up financing for a rival bid to

Kraft's

(KFT)

$16 billion offer for British confectionary maker

Cadbury

(CBY)

.

Hershey is examining a bid of its own or with a partner such as Italy's

Ferrero

, which makes Tic-Tacs, Nutella hazelnut spread and Ferrero Rocher chocolates, the

Wall Street Journal

reported.

Ferrero said Wednesday, in a statement separate from Hershey's, that it too was considering its options for Cadbury.

Hershey CEO David West has held preliminary talks with Ferrero bankers about teaming up to buy Cadbury, one person familiar with the matter said.

Hershey also has recently talked to

J.P. Morgan Chase

and

Bank of AmericaMerrill Lynch

about obtaining financing. The banks were receptive to the idea, the people familiar with the matter said.

The

Journal

notes that Hershey's renewed explorations are the first concrete evidence that a rival bidder may emerge for Cadbury.

Cadbury has rejected Kraft's offer.

-- Reported by Joseph Woelfel in New York

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