Hershey (HSY) could issue $2 billion of new shares and spend $10 billion of cash as part of a deal to steal Cadbury (CBY) from Kraft Foods (KFT something the Charitable Trust controlling Hershey would very much like, according to an article in the Wall Street Journal this afternoon.
The article, citing people familiar, says the Hershey Trust’s board is pressuring CEO David West to come up with an operating plan for a combined Hershey Cadbury, and that the Trust is contemplating spending $10 billion of cash, issuing $2 billion in new Hershey shares, and obtaining as much as $5 billion from outside investors to outbid Kraft’s $16.7 billion offer, which was rejected by Cadbury’s board as being too low.
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