Cadbury back in play with Kraft $16.73 Billion Bid

Cadbury back in play with Kraft $16.73 Billion Bid

Cadbury back in play with Kraft $16.73 Billion Bid

Hershey Co. is unlikely to stand by and let Kraft Foods Inc. or another company swallow up chocolate rival Cadbury PLC, a person familiar with Hershey's thinking said Monday.

"Hershey recognizes that Cadbury is the last major confectionery company potentially available and, as such, is likely to make some response" to Kraft's $16.73 billion bid for Cadbury PLC, this person said.

What form that response could take is unclear, but Hershey and Cadbury have been through serious flirtations in the past.

Hershey, with a market cap of about $8.8 billion, could have a difficult time financing such a deal. Cadbury's market cap, after shooting up Monday, is roughly $17.5 billion.

One potential option would be for Hershey to team with Nestle SA, the Swiss food giant, to make a joint bid in which Nestle would take Cadbury's gum business and Hershey would take chocolate. It is unknown whether Nestle and Hershey have been in talks.

At a media event on Monday, Nestle Chief Executive Paul Bulcke said the company is always "open to acquisition opportunities if they fit strategically."