Hershey, Ferrero eyeing Cadbury
TEXT OF STORY
Bill Radke: The Wall Street Journal is reporting Hershey and Ferrero, the Italian maker of Tic Tacs and Nutella, they’re in talks with banks to beat Kraft to the deal. Marketplace’s Christopher Werth has our story.
Christopher Werth: Kraft has been eyeing Cadbury for months. It’s offered around $16 billion for the company, a bid that Cadbury says is too low. Now, Hershey might be getting into the game with the help of Ferrero, which is in a strong financial position.
David Bailey of Conventry University says Hershey could be Cadbury’s white knight bidder.
David Bailey: I think strategically it makes more sense, a Hershey-Cadbury-Ferrero link up, than Cadbury falling into a huge American conglomerate that produces everything from Maxwell House coffee through to cheese slices. Cadbury doesn’t need Kraft for anything. It’s been doing very well on its own.
Bailey says the key for either bidder is access to fast-growing Indian market, where Cadbury has a strong presence. And for Ferrero, any involvement with the deal would allow them to tap into the lucrative British sweet tooth.
In London, I’m Christopher Werth for Marketplace.
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