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Hershey May Consider Cadbury Bid

Trust that controls Hershey hired banking firm to advise on possible bid for Cadbury to compete with an offer from Kraft Foods, according to a report.

NEW YORK (AP) -- The trust that controls Hershey Co. has hired notable banker and a small banking firm to advise on a possible bid for Cadbury PLC to compete with an offer from Kraft Foods Co., according to a published report.

The Wall Street Journal, citing people familiar with the matter, reported Thursday that the trust has hired Trott, a former Goldman Sachs & Co. banker who has worked closely with Warren Buffett and boutique banking firm Watch Hill Partners.

Kraft Foods Inc. made a $16.7 billion bid for Cadbury, which the U.K. company has rebuffed. While Kraft remains intent on further negotiations, many have speculated that Hershey may make a bid of its own.

Because of its smaller size in comparison with Kraft, Hershey could face more difficulty financing such a large acquisition. But some analysts have suggested it could partner with Swiss food company Nestle SA for a joint offer.

Representatives for Trott, Watch Hill and Hershey did not respond to requests for comment.