Cadbury shares hit a record high on speculation of a battle for the British confectioner between bidder Kraft Foods and rivals who are considering making takeover offers, analysts said today.
Cadbury shares rose over 2 per cent to a high of 817 pence before last trading up 1.9 per cent at 816p at 9.30am, or nearly 13 per cent above Kraft's bid valued at £9.9 billion pounds.
Kraft made its official cash and shares bid for Cadbury earlier this month, which currently values Cadbury shares at around 723p, and may raise its bid if other rival bidders emerge, said a source familiar with the situation late yesterday.
Most of the remaining large players in the worldwide confectionery industry -- US-based Hershey, Italy's Ferrero and Switzerland's Nestle -- are now weighing bids themselves, according to Reuters sources and media reports.
"It looks as if just about everyone in the confectionery industry is looking at Cadbury. Kraft is still our favourite, but talk of rival interest is pushing Cadbury's shares higher," said one industry analyst.
Reuters