US giant Kraft Foods said Tuesday that it will shut a Cadbury factory in western England after clinching a successful takeover of the British confectionery company earlier this month. Kraft said in a statement that the closure of a plant in Somerdale, near Bristol, had already been put in place by Cadbury, prior to the takeover that was clinched at the start of February.

Todd Stitzer told the Financial Times newspaper that the ethical values of the US brand tied in with Cadbury. Hershey and Italian peer Ferrero said Wednesday they were considering bids for Cadbury, in a move which whipped up a takeover war with Kraft Foods. Cadbury was founded by Quakers who marketed cocoa drinks as an alternative to alcohol, while Milton Hershey, who started the US firm, was inspired by Cadbury's Bourneville village in building his Pennsylvanian company town Hershey.

The Journal, citing several people familiar with the matter, said the Hershey Trust is pressing to top the hostile bid from US food giant Kraft estimated at some 16. 5 billion dollars. The bid, if it emerges, could include 10 billion dollars in cash from Hershey as well as two billion dollars worth of Hershey shares, the report said.

It said Kraft Foods, which proposed to buy Dirol Cadbury for 16 billion dollars, has applied "to be awarded rights to determine Dirol Cadbury's business policies," the RIA Novosti news agency reported. The agency responded by putting off a decision by two months to allow "interested parties to provide information on the impact this deal will have on competition" in the food industry.

US chocolate maker Hershey and Italian peer Ferrero said Wednesday they are considering a bid for British confectioner Cadbury, in a move which would whip up a takeover war with Kraft Foods. The news could remould the chocolate sector with a takeover costing more than 10. 0 billion pounds (11. 2 billion euros, 16.

The news could remould the chocolate-making sector with a takeover costing more than 10. 0 billion pounds (11. 2 billion euros, 16. 8 billion dollars). The Wall Street Journal, citing unnamed sources familiar with the matter, had reported on Tuesday that Ferrero was in talks with Hershey over a potential joint bid.

The jostling for position could herald a big change in the world of choclate confectionary, with a price ticket above 10. 0 billion pounds (16. 0 billion dollars). The Wall Street Journal, citing unnamed sources familiar with the matter, had reported on Tuesday that Ferrero was in talks with Hershey over a potential joint bid.

"Ferrero notes the recent press speculation regarding a potential offer for Cadbury. Ferrero confirms it is in the preliminary stages of evaluating its options in respect of Cadbury," the group said in a brief statement.

The Journal, citing unnamed sources familiar with the matter, said talks between executives at Hershey and Ferrero had not yet produced an offer. The discussions, in preliminary stages, were being held up by a dispute on Cadbury's higher-margin gum and candy businesses, the daily said. Ferrero is a privately held company that makes Nutella chocolate spread and Tic Tacs.

The commission, the competition watchdog of the 27-nation European Union, set a deadline of December 14 for its decision on whether the bid would upset the cpompetive balance in the sector.Cadbury has alr@