Cadbury shares rise on report of Nestle interest

posted: 2 DAYS 23 HOURS AGO

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LONDON -Shares in British chocolate maker Cadbury PLC hit their highest level in at least five years Monday on reports that another rival, Switzerland's Nestle SA, may make a takeover bid.

Cadbury is already the target of a $16.4 billion hostile bid from Kraft Foods which it has dismissed as "derisory."

U.S. chocolate company The Hershey Co. and Italy's Ferrero International SA last week said they are also considering a possible offer for Cadbury, possibly setting up a bidding war.

A report Monday by Bloomberg cited two unidentified sources saying Nestle is likewise reviewing its options about a possible offer.

Both Cadbury and Nestle declined to comment.

Shares in Cadbury jumped 2 percent to 816 pence ($1.36) but later settled slightly lower at 814 pence on the London Stock Exchange Monday.

2009-11-23 22:07:35