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Investors are hoping for "white knight" for Cadbury

By Simon Kennedy and Marietta Cauchi
Dow Jones Newswires 

LONDON (Dow Jones) – Hopes for a "white Knight "for the British confectionery group Cadbury let the Cadbury’s share price on Thursday afternoon by 0.9% to 796.50 Pence climbing. Hershey is working, according to British "Financial Times (FT) on a "last-minute bid for Cadbury and a formal offer could be within two weeks be presented, writes the FT, referring to an affair with familiar person. Hershey has under British takeover law to 23 January time to present an offer. A product of Hershey would, according to FT in the interests of the management of Cadbury.

Currently, the U.S. offers group Kraft Foods in a cash and Share component of around 765 pence for a Cadbury share. The total volume this amounts to GBP 10.5 billion (equivalent to 17.1 billion USD). Kraft Foods Cadbury wants to take over against their will and had recently increased the cash component of its bid to make it Cadbury to make palatable to shareholders. The cash component is currently at 360 Pence per share. The offer of power is given by U.S. dollar weakness and decline of the power-share since its announcement, the value decreased. Cadbury rejects bid but still as too low.

The FT reported further on Thursday, the Hershey Trust, which a One-third of the group and controls 80% of voting rights was USD 1.25 billion bid for Cadbury-ready set. In addition, to the former Goldman Sachs banker Byron Trott funds belonging to Private equity companies advertise.

A week ago, the Wall Street Journal wrote "under Appeals to informed persons, members of the board of Cadbury have already been talks with Hershey over a counteroffer conducted. Cadbury would support an offer from Hershey. According to the informant, the Cadbury managers have the Hershey’s leadership includes an indication given to the price that they support would. "Cadbury wants a friendly deal, a white Knight is an option, "said one well-informed persons. From That is why there are further talks behind closed Doors.

If in the course of negotiations Cadbury, Hershey’s Books Open, it would also force the company to access their data . grant Unlike the Hershey Foods Corp. from the same city in Pennsylvania Kraft Foods currently have no contact with Cadbury, one informant said a week ago. Any negotiations a friendly takeover bid by force keeps the Informant was unlikely.

According to analysts would be one of the reporting day Hershey bid for Cadbury surprising and extremely challenging for the Americans. They point out that Hershey will probably a Lift offer alone and without a partner company would have.

Only two days ago, the Wall Street Journal reported, " the Italian chocolate maker Ferrero had apparently decided against a bid for Cadbury. As one with the Matter familiar person has said, the Ferrero SpA from Talks with Hershey over a joint bid for Cadbury withdrawn. Such an offer would not be the strategy of fitted Italian family group, so the reasoning.

Jeffries experts see the probability of a Hershey sole bid for Cadbury at only 15%. A quote in this Would make a high volume of capital required and then the Hershey Trust would lose control, the Observers. They also hold the entry of private equity partners in a Bidding also unlikely. At the end strength is expected as Winners emerge from the affair, partly because the Americans, thanks to the Sales of frozen pizza business gained in strength have.

Investors hoping for a counter offer from Cadbury and the force would spurn-bid, said people briefed Dow Jones Newswires. Currently, Kraft CEO Irene Rosenfeld tries London Cadbury important to convince investors of their offer. "She did not say something new or something really important," says one investor after a meeting. "It is clear that we are between 800 pence and 850 View pence for a stock like. In the cash portion is as high as be possible. Nobody wants to shares of force, "said the investor on. A other investor, however, said he thought that the quote character would increase and then a total of between 835 pence and 850 pence for Cadbury one share offer. Kraft has for an increase to 23 January period.

The takeover battle has continued for months in the gained in recent days sharpness. The investment company Berkshire Hathaway, the U.S. investor Warren Buffett had publicly opposed the issuance of new shares, with the power of the To finance acquisition of Cadbury wants. Berkshire Hathaway holds as the largest shareholder of strength about 9.4% of the food group. Despite sharp criticism of the force joined the investment company Exchange of views is not sufficient. If the terms of the acquisition agreed, could be Berkshire Hathaway transaction support, had said the U.S. investment company.

Kraft wants to buy Cadbury, the confectionery business at Mars for competitors to catch up. The U.S. group had Mars 2008, the U.S. chewing gum company Wrigley and is assumed to World leader risen. Force is, according to observers been relatively weak in the confectionery business and may be related to the purchase of Cadbury chocolate as well as both in chewing gum catch up with Mars.


Websites: www.ferrero.com

- By Simon Kennedy and Marietta Cauchi, Dow Jones Newswires
+49 (0) 69 29 725 108, unternehmen.de @ dowjones.com

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(END) Dow Jones Newswires

January 14, 2010 09:53 ET (14:53 GMT)

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