Chocolate Makers Won't Be in Kraft's Path

Business news from the "sweet" companies resemble kind of well-planned advertising campaign.

Italian chocolate maker Ferrero on Monday said it did not intend making a counter-bid for British confectioner Cadbury, which last week agreed to a multi-billion-dollar takeover from US giant Kraft Foods.

US chocolate maker Hershey had on Friday also ruled out a counter-bid after reports suggested that it was weighing up a joint offer with Ferrero.

Ending a bitter hostile takeover battle with Kraft, the board of Cadbury last week agreed to an improved offer worth 11.5 billion pounds (13.1 billion euros, 18.9 billion dollars), or 840 pence per share.

Under the deal, Cadbury shareholders will also receive 10 pence per share via a special dividend, lifting Kraft's offer to 11.9 billion pounds.

AFP has contributed to the report.

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