Page last updated at 08:23 GMT, Monday, 25 January 2010

Ferrero pulls out of Cadbury race

The Cadbury's logo is seen displayed outside the Somerdale plant in Keynsham
Unions are worried that a takeover of Cadbury will lead to job cuts

Italy's Ferrero has formally declared itself out of the takeover battle for UK confectioner Cadbury.

The announcement came on the deadline for companies to make firm offers, with America's Hershey having already ruled itself out of the running on Friday.

Ferrero, which makes Nutella and Tic-Tacs, had reportedly been mulling over a joint bid with Hershey for Cadbury.

Last week, Cadbury's board agreed to a takeover offer from US company Kraft Foods.

At the time the deal was agreed, Kraft's cash and shares offer valued Cadbury shares at 840 pence each.

Deadline

In a statement, Ferrero said: "Further to its announcement of November 18, 2009, Ferrero International SA confirms that it does not intend to make an offer for Cadbury."

Kraft, the maker of Oreo cookies, now has until 2 February to convince Cadbury shareholders to accept its offer.

If Kraft's takeover of Cadbury goes ahead, the combination will create the world's largest confectionery company.

British MPs and trade unions are concerned about the job losses the deal will involve, as well as the amount of debt Kraft is taking on in order to secure the takeover.



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