Nestle Bid Boosts Cadbury Shares

LONDON (AP) -- 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).