M&A

17 November, 2009

UPDATE 1-Hershey joins Ferrero in talks on Cadbury -WSJ

* Hershey in talks with Italy's Ferrero on Cadbury bid

 * Talks have been on for several weeks, no offer yet

 NEW YORK, Nov 17 (Reuters) - U.S. chocolate maker Hershey

Co (HSY.N) has held talks for several weeks with Italy's

Ferrero Spa over a potential bid for Cadbury Plc (CBRY.L) that

would rival a hostile offer from Kraft Foods Inc (KFT.N), The

Wall Street Journal reported on Tuesday.

 Citing people familiar with the matter, the Journal said

Hershey executives have been more aggressive about pursuing a

deal, though financial details have not been discussed and no

offer has been produced.

 One obstacle is which company would take control of

Cadbury's higher-margin gum and candy businesses, the Journal

said.

 Hershey officials could not be immediately reached.

 (Reporting by Michele Gershberg, editing by Matthew Lewis)

Source: http://www.reuters.com