STOCKS NEWS UK-Cadbury up on hopes of Hershey-Ferrero rival bid

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08:31GMT 18Nov2009-Cadbury up on hopes of Hershey-Ferrero rival bid

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Cadbury CBRY.L shares rise as much as 1.8 percent on hopes chocolate makers Hershey Co (HSY.N) and Ferrero SpA will mount a joint bid for he British confectioner, which could help it fend off a hostile takeover by Kraft Foods Inc (KFT.N). Analysts said they were unlikely to rush into any move, however.

A source familiar with the talks between U.S.-based Hershey and Italy's Ferrero told Reuters on Tuesday that discussions between the two sides were at a preliminary stage, giving the strongest signal yet of a possible rival bid to Kraft's $16.7 billion offer, which Cadbury has rejected as "derisory".

"A combination of Hershey and Nestle (NESN.VX) was initially talked about and Ferrero has been mentioned this week so perhaps they have got together, which would probably be good news for Cadbury, but it could be wishful thinking," said FinnCap analyst Charles Pick.

"But there could be something in it and if there is they (Hershey and Ferrero) would have plenty of time and could just wait and see how events unfold and look at the offer document when it's released."

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08:24 GMT 18Nov2009-FTSE small caps up 0.2 pct at the open

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The FTSE Small Cap Index .FTSC gains 0.2 percent in early trade, taking its cue from London's blue chips .FTSE which also add 0.2 percent, while the FTSE 250 .FTMC rises 0.4 percent.

Building-maintenance firm Rok Plc ROK.L rises 6.4 percent, topping the small cap risers in early on, after the firm announces it has been awarded Preferred Bidder as part of consortium in Oldham Housing Project worth 130 million pounds. [ID:nRnsR6658C]

British driving services firm Trafficmaster Plc TFC.L falls 1.6 percent after the company reports a fall in consumer services revenues and decreased visibility over the timing of future revenues for its business services division, but says it is on track to deliver a similar level of operating profit in 2009 as in the previous year. [ID:nRnsR6645C]

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