Hershey preparing counter-bid for Cadbury

A formal offer to this effect could be made within two weeks,the daily said citing sources.

A Hershey bid would be welcomed by Cadbury,which is resisting Kraft8217;s approach.

8220;Although Cadbury has not solicited a 8216;white knight8217; bid from Hershey publicly,the confectioner has made clear that it would prefer Hershey to Kraft,8221; FT said.

The charitable trust owns a third of Hershey8217;s stock but controls 80 per cent of its shareholder votes.

Meanwhile,Cadbury Chairman Roger Carr has told the newspaper that 8220;Hershey,which owns the rights to the Cadbury brand in the US,is 8216;more appealing8217; from a cultural view.

As per a plan under discussion,Hershey Foods will authorise a former Goldman Sachs investment banker Byron Trott to attract private equity investors into the deal.

The use of debt,could threaten Hershey Trust8217;s investment-grade credit status,but sources told FT that the bid being prepared 8220;will probably be investment-grade and do8217;able8221;.