Ferrero withdraws from Cadbury bidding
January 25, 2010
by Eric Schroeder
ALBA, ITALY — Ferrero International S.p.A. on Monday said it will not bid for Cadbury P.L.C., paving the way for Kraft Foods Inc. to complete its buyout of the London-based company. The decision by Ferrero to pull out of the bidding comes three days after The Hershey Co. took its name out of the running for Cadbury.
Privately-owned Ferrero had said on Nov. 18, 2009, that it was considering its options regarding a rival bid to Kraft Foods’ bid. In its Jan. 25 announcement, Ferrero did reserve the right to make an offer for Cadbury in the event that there is a material change in circumstance; the Kraft offer lapses or is withdrawn; an offer for all or some of the shares in Cadbury by a third party is announced; or a whitewash proposal or a reverse takeover is announced in respect of Cadbury.