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Cadbury shares rise on report of Nestle interest

Shares in British chocolate maker Cadbury PLC hit their highest level in at least five years Monday on reports that another rival, Switzerland's Nestle SA, may make a takeover bid.
/ Source: The Associated Press

Shares in British chocolate maker Cadbury PLC hit their highest level in at least five years Monday on reports that another rival, Switzerland's Nestle SA, may make a takeover bid.

Cadbury is already the target of a $16.4 billion hostile bid from Kraft Foods which it has dismissed as "derisory."

U.S. chocolate company The Hershey Co. and Italy's Ferrero International SA last week said they are also considering a possible offer for Cadbury, possibly setting up a bidding war.

A report Monday by Bloomberg cited two unidentified sources saying Nestle is likewise reviewing its options about a possible offer.

Both Cadbury and Nestle declined to comment.

Shares in Cadbury jumped 2 percent to 816 pence ($1.36) but later settled slightly lower at 814 pence on the London Stock Exchange Monday.