FERRARO CONFIRMS INTEREST IN CADBURY

FERRARO CONFIRMS INTEREST IN CADBURY

(ANSA) - Rome, November 18 - Italian confectioner Ferrero confirmed on Wednesday that it was considering joining American chocolate titan Hershey in a joint bid to acquire Britain's Cadbury.

In a statement released at the London Stock Exchange, the maker of Ferrero Rochet pralines and Nutella spread said it was "in the preliminary stages of evaluating its options in regard to Cadbury".

Should it come about, the bid would be made with American chocolate titan Hershey, which also released a statement to say that it was "reviewing its options and at this stage there can be no assurance that any proposal or offer will be forthcoming".

Cadbury is currently under siege by US food conglomerate Kraft which has made several hostile bids for the British company, the last valued at over 11 billion euros.

Although the British company, which is the world's second biggest confectioner after Mars/Wrigley, rejected the Kraft offer as "derisory," many analysts are convinced the American giant will up its offer, while trying to keep it as low as possible.

Kraft has said it will take its offer directly to Cadbury shareholders when they meet December 7.

Before making any joint bid, observers believe Ferrero and Hershey will first have to decide how to split Cadbury's products between them, in particular its gum and candy brands.

According to The Times of London, there appear to be different views at Ferrero about Cadbury between the patriarch of the family business, Michele Ferrero, who is opposed to alliances with other companies, and his managing director sons Pietro and Giovanni, who are said to be eager to join forces with an ally like Hershey in order to get the British confectioner.

Ferrero this year was voted the world's most reputable company in the annual survey by the Reputation Institute.

The Italian company, which was fourth last year, climbed to the top spot ahead of Swedish furnishings giant Ikea and the American consumer products conglomerate Johnson & Johnson.

Michele Ferrero has been Italy's richest man for the past two years, after overtaking Italy's premier and media tycoon Silvio Berlusconi.

Aside from Ferrero Rocher and Nutella, the Italian confectioner makes the coffee-filled dark chocolate Pocket Coffee, Mon Cheri chocolate-covered cherries, Giotto gianduja chocolates, the coconut-covered sweet Raffaello and Tic Tac breath mints.

It also produces the Kinder line of children's snacks.