Hershey rules out offer for Cadbury

UNITED STATES chocolate firm Hershey cleared the way for Kraft's £11.9bn takeover of Cadbury yesterday after it said it would not make a counter-bid.

By The Newsroom

Published 22nd Jan 2010, 19:14 BST

Updated 22nd Jan 2010, 19:14 BST

Hershey's formal withdrawal from the race came three days after an improved Kraft bid was recommended by Cadbury's board.

The 840p-per-share offer is set to end the independent history of the British firm, which dates from 1824.

Kraft said it had "great respect for Cadbury's brands, heritage and people, " but also highlighted "meaningful cost savings", prompting fears about huge job losses.

Trades unions are seeking urgent meetings with Kraft, which makes Philadelphia cheese, seeking guarantees over jobs.

Cadbury employs around 45,000 staff in 60 countries. It has 5,600 staff at eight manufacturing sites in the UK and Ireland, including 800 at its Bassett's Liquorice Allsorts plant in Sheffield.

Earlier this week, billionaire investor Warren Buffett said Kraft Foods' proposed acquisition of Cadbury was a bad deal. His Berkshire Hathaway firm has a 9.4 per cent stake in Kraft.