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 (£10.2bn) bid rebuffed.
Hershey has drafted in Goldman Sachs banker Byron Trott and boutique banking firm Watch Hill Partners to advise on a bid for the company.
Trott is known to be billionaire Warren Buffett’s favourite banker and advised the charismatic entrepreneur when his Berkshire Hathaway vehicle helped finance Mars’ $23bn takeover of Wrigley last year.
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.
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.
And Buffett, whose Berkshire Hathaway group is Kraft’s largest shareholder, said this week the company had “a lot to do” to justify the low price it was offering for Cadbury.
Kraft, Cadbury and Hershey were unavailable for comment.