Ferrero may join Cadbury fight

Ferrero has discussed a 2.8bn loan with Italian bank Medio-banca, according to The Times.

Cadbury is currently the subject of a hostile bid from US firm Kraft and shareholders have until February 2 to accept its offer valuing the British confectioner at 764p a share, or 10.5bn.

Ferrero, which has already revealed a possible interest in a bid, is thought to be more likely to join forces with another bidder – possibly US firm Hershey – to try and rival the Kraft bid.

The difficulties of negotiating a partnership with another company and lining up funding are understood to have dampened enthusiasm for a rival offer, but the details of Ferrero's loan indicates it is still possible.