Hershey hires adviser, mulls Cadbury bid

The trust that controls Hershey Co has hired a notable banker and a small banking firm to advise on a possible bid for rival candy maker 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 on Thursday that the trust has hired Byron Trott, a former Goldman Sachs & Co banker who has worked closely with famed investor Warren Buffett, and boutique banking firm Watch Hill Partners.

Kraft Foods Inc has made a $US16.7 billion ($A19.13 billion) bid for Cadbury, which the UK 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.

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