UPDATE 1-Hershey rules itself out of bidding for Cadbury

(Repeats with ‘update 1’ prefix to headline)

LONDON, Jan 22 (Reuters) - U.S. confectionery group Hershey HSY.N on Friday ruled itself out of making a rival bid for Cadbury Plc CBRY.L after the British confectioner agreed a takeover by Kraft Foods KFT.N earlier this week.

“Further to its announcement on 18 November 2009 and the statement by the Panel Executive on 19 January 2010, the Hershey Company announces that it does not intend to make an offer for Cadbury,” Hershey said in a statement.

Earlier this week Kraft agreed a cash and shares deal which values Cadbury currently at 11.7 billion pounds ($19.1 billion) while potential bidders, Hershey and Italy’s Ferrero, were given until 0700 GMT on Jan. 25 to either come up with a fully financed rival bid or withdraw.

According to sources close to the situation Ferrero has withdrawn its interest in Cadbury, but has not made an official statement. ($1=.6126 pounds) (Reporting by David Jones; Editing by Greg Mahlich)