Cadbury Plc shares hit a record high on speculation of a battle for the British confectioner between bidder Kraft Foods Inc and rivals who are considering making takeover offers, analysts said on Monday.
Cadbury shares rose more than 2% to a high of 817 pence before last trading up 1,9% at 816p at 09.30GMT, or nearly 13% above Kraft’s bid valued at £9,9-billion.
Kraft made its official cash and shares bid for Cadbury earlier this month, which currently values Cadbury shares at about 723p, and may raise its bid if other rival bidders emerge, said a source familiar with the situation late on Sunday.
Most of the remaining large players in the worldwide confectionery industry — United States-based Hershey Co, Italy’s Ferrero and Switzerland’s Nestle AG — are now weighing bids themselves, according to Reuters sources and media reports.
”It looks as if just about everyone in the confectionery industry is looking at Cadbury. Kraft is still our favourite, but talk of rival interest is pushing Cadbury’s shares higher,” said one industry analyst. — Reuters