Ferrero weighs Cadbury alliance offer

Italian chocolatier Ferrero might be considering an offer with friendly investors for an alliance with British confectioner Cadbury, the subject of a hostile bid from Kraft, an Italian newspaper reported on Tuesday.
Business daily Il Sole 24 Ore said Ferrero, which makes Nutella chocolate spread, could join financial investors and private equity players considered friendly to Cadbury for a possible alliance. The newspaper did not quote any sources.
Ferrero declined to comment on the report.
Last week, US food group Kraft took its USD 16.2 billion offer for Cadbury to the British company's shareholders, refusing to sweeten its price.
Ferrero, which had sales of 6.2 billion euros (USD 9.3 billion) in its 2007-08 and year, has 14 factories and over 21,600 employees worldwide.
Cadbury is the world's second-largest confectionery company after Mars-Wrigley, making brands such as Dairy Milk chocolate and Trident gum. It had full-year revenues of 5.4 billion pounds (USD 9.1 billion) in 2008.
Ferrero was founded in 1946 by Pietro Ferrero, who launched the Gianduja product based on hazelnuts. His son Michele took control in 1957 and the company is now run by his sons, Pietro and Giovanni, who are chief executives.
(USD 1 = 0.5941 pound = 0.6685 euro)