Chocolate firm Ferrero has moved a step closer to joining the Cadbury bidding war after lining up a loan that could be used to back an offer, it was reported today.<\/p>\n Ferrero, which makes Ferrero Rocher and Kinder chocolate eggs, has discussed a $4.5bn loan with Italian bank Mediobanca, according to The Times in England.<\/p>\n 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 \u20ac11.6bn.<\/p>\n Ferrero, which has already revealed a possible interest in a bid, is thought to be more likely to join forces with another bidder \u2013 possibly US chocolate firm Hershey \u2013 to try and rival the Kraft bid.<\/p>\n 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\u2019s loan indicates it is still possible.<\/p>\n According to The Times, which cites local reports in Italy, Ferrero had still not made up its mind about whether or not to throw its hat into the ring.<\/p>\n The number of potential bidders for Cadbury has dwindled recently after KitKat firm Nestle ruled out a counter-bid.<\/p>\n Cadbury has fought vehemently against the Kraft attempt for months, dismissing the offer as \u201cderisory\u201d and urging shareholders to support the company as an independent entity.<\/p>\n This week the Dairy Milk maker will publish trading figures showing strong sales for 2009, as it looks to convince investors of the firm\u2019s strength.<\/p>\n Its last defence document saw it up long-term performance targets and issue higher profit margins guidance.<\/p>\n Kraft has until January 19 to decide whether to raise its bid further and an offer of more than 800p is thought to have more of a chance of enticing Cadbury shareholders.<\/p>\n But the Dairylea and Toblerone firm would need the support of Warren Buffett, whose Omaha-based Berkshire Hathaway investment vehicle owns almost 10% of Kraft, to up its offer.<\/p>\n Mr Buffet has already warned Kraft not to overpay for Cadbury and last week said shareholders should not be asked to write a \u201cblank cheque\u201d by issuing 370 million new Kraft shares to finance the bid.<\/p>\n Share Investor Links<\/span><\/a><\/a><\/p>\n Share Investor Blog<\/a> – Stockmarket & Business commentary Recommended Amazon Reading<\/span><\/p>\n<\/a>
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