Shares in British chocolate maker Cadbury rose back above 800 pence for the first time in almost a month on hopes Hershey Co and Ferrero SpA would mount a bid to rival that of US food giant Kraft.
Reuters reported today that US-based Hershey and Italy's Ferrero, famed for its Nutella chocolate spread and Ferrero Rocher boxed chocolates, were considering a joint bid to help fend off Kraft's hostile takeover approach.
A source familiar with the talks between Hershey and family-owned Ferrero said discussions were "very preliminary, very early in the process".
Shares in Cadbury, the world's second-largest confectionery company after Mars-Wrigley, were up 1.4 per cent at 799 pence by 0817 GMT having earlier risen to 802.5 pence, the first time it has been over 800 pence since October 21st.
Kraft first disclosed its interest in September, and went hostile with its bid on November 9th.
Cadbury last week rejected as "derisory" a $16.2 billion takeover bid from Kraft, while shareholders in the 185-year-old British maker of Dairy Milk chocolate, Trident gum and Halls cough drops have called for a substantially better offer.
Cadbury declined to comment.
Reuters