No Action from New Cadbury Contestants, But Plenty of Talk

The rumors are flying. Hershey (HSY) is launching a solo bid for Cadbury (CBY). Hershey is launching a joint bid for Cadbury with Ferrero. Cadbury is eager for Hershey's bid. Cadbury will reject Hershey's bid. Nestle will join Hershey and Ferrero to bid on Cadbury. Nestle will go it alone. And most of this coming from that most popular of commentators, anonymous "sources familiar with the matter."

But though the rumors are sending Cadbury stock prices up (along with Hershey credit-default swaps), nothing has actually happened yet. These companies may be examining their options, but Kraft Foods (KFT) -- the only company to actually put an offer on the table -- still has the best position.

Analysts are doubtful that Hershey or Ferrero could come up with the money to beat Kraft's offer, on top of which, a Pennsylvania law aimed specifically at Hershey requires the company to get permission on any such deals from the state attorney general. And Nestle can't possibly buy Cadbury by itself without facing serious anti-trust problems.

Meanwhile, there's not a peep from Kraft, though "a source familiar with the situation" is certain the company will raise its offer.

Related Stories on BNET Food:

• Hershey and Ferrero's Cadbury Interest Unlikely to Push Up Kraft Bid
• Kraft Battle for Cadbury Takeover Just Beginning
• Bar Raised as Kraft Cadbury Bid Deadline Approaches
• More Drama and Mixed Messages in Kraft-Cadbury Flirtation
• Cadbury Warms to Kraft Bid, Pushes for Deadline
• Cadbury Chairman Insults Kraft in Open Letter
• Cadbury Playing Hard-to-Get?