Italian chocolate maker Ferrero is reportedly considering an alliance with Cadbury to counter a hostile takeover bid for the British company from US food group Kraft.
An Italian business newspaper said Ferrero has been looking at joining forces with financial investors and private equity groups that are friendly to Cadbury. Ferrero, which is best known in Europe for Nutella chocolate spread, declined to comment on the report of a possible alliance. A family owned business, Ferrero reported sales of 6.2 billion euros last year from 18 factories employing over 21,000 people worldwide. Cadbury, the world’s second-largest confectionery company, has rejected Kraft’s 11 billion euro offer. Institutional investors have been buying Cadbury shares, betting Kraft will sweeten its price.