Hershey rules out Cadbury bid
January 22, 2010
by Keith Nunes
HERSHEY, PA. – The Hershey Co. said it does not intend to make an offer for Cadbury P.L.C., London. The announcement ends speculation that the U.S.-based confectionery company would make an offer competitive with the offer made by Kraft Foods Inc., Northfield, Ill.
The Hershey Co. was required by the United Kingdom’s Takeover Panel to announce by Jan. 25 whether it intended to make an offer or not.
On Jan. 19, Kraft Foods said the board of Cadbury had accepted and recommended to shareholders a revised takeover offer valued at approximately $18.9 billion. Under terms of the revised offer, Cadbury shareholders would receive 500p in cash and 0.1874 new Kraft shares for each Cadbury share. In addition, shareholders also would receive 10p per Cadbury share by way of a special dividend, bringing the total to 850p.