When last we visited the $16 billion-odd acquisition battle for chocolatier Cadbury PLC (CBY), Hershey’s (HSY) board of directors and the charitable trust that holds a controlling stake in the firm were split, with the board worried a bid could risk the company’s investment grade debt rating and the Trust arguing strongly for a deal.
The New York Post’s Josh Kosman today reports that the Hershey Trust is considering making a “solo” bid for Cadbury, by which I take it he means that Hershey wouldn’t have a partner, such as Italian confectioner Ferrero, which was originally reported to be considering a joint deal with Hershey. (Italian media yesterday reported Ferrero is still interested in Cadbury.) Going for Cadbury on its own would require Hershey to raise as much as $10 billion, and though Hershey CEO David West is reluctant, Kosman reports he and the Trust are “ironing out their differences.”
Hershey shares today are up 1 penny at $36.39. Cadbury’s American Depository Receipts are up 55 cents, or 1%, at $50.87.
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