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U.S. chocolate giant Hershey is considering launching a bid for control of British counterpart Cadbury, The New York Times reported Saturday.
Citing "people briefed on the matter," the Times said Hershey is considering a challenge to Kraft's existing $16.7 hostile takeover bid for the British confectioner.
The sources told the Times that any Hershey bid for Cadbury would have to be worth at least $17 billion and would represent a leap from the long-held financial conservatism of the U.S. chocolate maker, which has reportedly been working with JPMorgan Chase and the Merrill Lynch unit of Bank of America to obtain financing for the bid.
The newspaper said that while Cadbury and Hershey already have distribution ties, the U.S. company had assumed it couldn't compete with Kraft's offer. The financial markets, however, have loosened in the meantime.
Cadbury, which is reportedly reluctant to merge with Kraft because it views the conglomerate as a slow-growth company that would limit its opportunities, could be more receptive to an overture from Hershey, the Times said.
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