Hershey may make bid for Cadbury
NEW YORK - The trust that controls Hershey Co. has hired a notable banker and a small banking firm to advise it on a possible bid for rival candy maker Cadbury PLC to compete with an offer from Kraft Foods Inc., according to a published report.
The Wall Street Journal, citing people familiar with the matter, reported yesterday the trust has hired Byron Trott, a former Goldman Sachs & Co. banker who has worked closely with famed investor Warren Buffett, and boutique banking firm Watch Hill Partners.
Northfield, Ill.-based Kraft Foods has made a $16.7 billion bid for Cadbury, which the United Kingdom company has rebuffed.
While Kraft remains intent on further negotiations, many have speculated Hershey may make a bid of its own.
Because of its smaller size in comparison with Kraft, Hershey could face more difficulty financing such a large acquisition. But some analysts have suggested it could partner with Swiss food company Nestle SA for a joint offer.
Hershey declined to comment. Representatives for both Trott and Watch Hill did not respond to requests for comment.