Italian chocolatemaker Ferrero has ruled out making a bid to purchase United Kingdom confectioners Cadbury . The move comes after Cadbury's board recommended accepting a takeover bid by United States firm Kraft that valued the company at £11.9 billion sterling . Ferroro is best known for its Rocher branded chocolates and the advertisements that accompany them. It had been rumoured that the Italians would team up with another US firm, Hershey , to submit a joint bid for Cadbury. However, on Friday Hershey decided not to attempt to purchase Cadbury, who are most famous for Dairy Milk chocolates. Both companies had been given yesterday as their deadline to declare their intentions regarding their British rival. Kraft now seem likely to achieve their aim of buying up the confectioner, after four months of negotiations and an offer that was increased twice. Italian newsppaer Il Sole 24 said Ferrero had backed out because of the amount of debt they would need to take on and a perceived requirement for job cuts. Jeremy Batstone-Carr, an analyst with Charles Stanley , said British stock investors were likely to not want Kraft shares. "UK-based investors are unlikely to want to hold Kraft stock... We believe that as many as half these holders... will be looking for alternative investment destinations here in the UK." Shareholders have until February 2 to consider the offer. If they accept, Cadbury will cease to be an independant company, which it has been since it was founded in 1824.
Italian chocolatemaker has ruled out making a bid to purchase United Kingdom confectioners . The move comes after Cadbury's board recommended accepting a takeover bid by United States firm Kraft that valued the company at £11.9 billion . Ferrero is best known for its branded chocolates and the advertisements that accompany them. It had been rumoured that the Italians would team up with another US firm, , to submit a joint bid for Cadbury. However, on Friday Hershey decided not to attempt to purchase Cadbury, who are most famous for chocolates. Both companies had been given yesterday as their deadline to declare their intentions regarding their British rival. Kraft now seem likely to achieve their aim of buying up the confectioner, after four months of negotiations and an offer that was increased twice. Italian newspaper said Ferrero had backed out because of the amount of debt they would need to take on and a perceived requirement for job cuts. Jeremy Batstone-Carr, an analyst with , said British stock investors were likely to not want Kraft shares. "UK-based investors are unlikely to want to hold Kraft stock... We believe that as many as half these holders... will be looking for alternative investment destinations here in the UK." Shareholders have until February 2 to consider the offer. If they accept, Cadbury will cease to be an independant company, which it has been since it was founded in 1824.
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Cadbury
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sterling
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Ferroro
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Charles Stanley