Hershey eyes Cadbury bid

THETRUST in charge of US confectionery maker Hershey has hired bankers to advise on a possible bid for Cadbury, after fellow American giant Kraft had a $16.7bn (&pound;10.2bn) bid rebuffed.<br /><br />Hershey has drafted in Goldman Sachs banker Byron Trott and boutique banking firm Watch Hill Partners to advise on a bid for the company.<br /><br />Trott is known to be billionaire Warren Buffett&rsquo;s favourite banker and advised the charismatic entrepreneur when his Berkshire Hathaway vehicle helped finance Mars&rsquo; $23bn takeover of Wrigley last year.<br /><br />But if Trott advises Hershey to bid, the company would first have to overcome the fact that it could only finance the deal with outside assistance.<br /><br />A part-stock transaction is also highly unlikely because it would dilute the holding of the trust that owns Hershey to such an extent that it would lose control of the company.<br /><br />And Buffett, whose Berkshire Hathaway group is Kraft&rsquo;s largest shareholder, said this week the company had &ldquo;a lot to do&rdquo; to justify the low price it was offering for Cadbury.<br /><br />Kraft, Cadbury and Hershey were unavailable for comment.<br />