Cadbury has no comment on Hershey board moves

Written by:
Subscribe to Oneindia News

LONDON, Nov 12 (Reuters) British confectionery group Cadbury Schweppes declined to comment on Monday on a sweeping overhaul of directors at U.S. rival Hershey Co amid market talk of a tie-up between the two groups.

The Hershey Trust, which controls about 78 percent of the U.S.

chocolate maker's voting shares, on Sunday forced six of the group's 11 directors to resign, while two others chose to go as the Trust said it was not satisfied with recent results.

Cadbury, which plans to demerge its soft drinks business in the second quarter of 2008, to become a pure confectionery group has been subject of speculation about a tie-up with Hershey, especially after a report earlier this year that the Trust and Cadbury had met.

A Cadbury spokeswoman declined to comment on the changes in Hershey's board and also on the reported meeting with the Hershey Trust earlier this year.

Analysts said a Cadbury-Hershey combination would make strategic sense, but questioned how a deal could be made to work as the Trust would still want to retain control.

Cadbury shares were up 1 percent at 606 pence by 0940 GMT.


Please Wait while comments are loading...