Cadbury's defiant as Nestle weighs up bid

Cadbury chiefs today stressed they want the company to remain independent – unless the price is right, as another confectionery giant sized up a takeover bid.

Nestle, the world's second biggest confectionery firm, could challenge US food giant Kraft, which has already tabled a £9.4 billion hostile bid for Cadbury, with its historic home in Bournville, Birmingham.

Cadbury bosses have already described the offer from Toblerone maker Kraft as "derisory" and made it clear there would be no deal unless a much higher bid was tabled.

Two other chocolate giants – America's Hershey and Ferrero of Italy – are also said to be considering entering the bidding fray.

There had been speculation that Hershey would team up with Ferrero to mount an offer, but according to reports the Hershey Bar-maker is understood to be at an advanced stage in drawing up a £10.3 billion offer of its own.

Hershey already has a business relationship with Cadbury, holding a licence to make Dairy Milk bars and Cadbury Creme Eggs in the USA.

It is considered to be a better fit to Cadbury's business and a counter-bid could held the British chocolate maker trump the unwanted Kraft offer.

But a spokesman for Cadbury, which employs around 2,500 people in the West Midlands, said: "We're focused on delivering value to shareholders as a standalone pure-play confectioner.

"However, we have always said that we would give proper consideration to any serious offer that delivers full value for the company.

"Unlesswe find ourselves in that situation we have nothing to comment upon."

Todd Stitzer, Cadbury's chief executive, has acknowledged the logic of a merger with Hershey to create a global group.

Meanwhile, Royal Bank of Scotland has attracted the ire of MPs after it backed the Kraft offer.

Lib Dem spokesman Vince Cable said RBS should not be supporting a foreign company's attempts to take over a British business.

"It is a scandal: this is not what a nationalised bank should be doing," he said.