New York: Hershey Co and the trust that controls it are close to deciding whether to bid for rival candy maker Cadbury PLC, The Wall Street Journal (WSJ) reported Wednesday evening, citing sources close to the matter.
However, no announcement or decision is imminent as Hershey is still weighing its choices, a source familiar with the situation said.
The Pennsylvania-based company is wary of sacrificing its investment-grade credit rating should it buy the British company, a move that would add $10 billion in debt, according to a story on the newspaper’s web site.
However, Hershey’s management and the trust are both leaning toward bidding for Cadbury, which owns the Trident gum brand, the paper said.
Hershey’s managers and the trust have been meeting to discuss the bid, the WSJ reported.
A Hershey Trust spokesman declined to comment on the article late Wednesday, but did note the trust held its regular annual meeting last week.
The Hershey Trust uses proceeds from the famed chocolate maker to run the Milton Hershey School, which serves underprivileged children.