Final Bids For Kraft Polish Unit Due 3rd Wk Of June - Sources

9th Jun 2010 15:17

By Marynia Kruk Of DOW JONES NEWSWIRES WARSAW (Dow Jones)--Final bids for E. Wedel, the Polish business of Kraft Foods Inc. (KFT), are due by the third week of June, two people familiar with the situation said Wednesday. Kraft is selling Polish and Romanian assets it acquired as part of its February takeover of U.K. confectioner Cadbury PLC for GBP11.9 billion. The disposals have been imposed by the European Union as a condition of allowing the takeover. The company has whittled down the list of potential buyers to a shortlist of six, including two buyout firms and four strategic players. Bridgepoint and Advent International have made the cut, along with Swiss giant Nestle SA (NESN.VX), and Hershey Co. (HSY) of the U.S. However, one source familiar with the process told Dow Jones Newswires that Ukrainian confectioner Roshen may no longer be in the running. It is unclear whether the final bidder is another local company such as Poland's Jutrzenka Holding SA (JTZ.WA) or an yet unnamed international player. HSBC Holdings PLC (HBC) is running the auction for Cadbury-Wedel Polska, one of Cadbury's Polish businesses, while BNP Paribas SA (BNP.FR) has been hired to run the sale of the Romanian business, Kandia-Excelent. Wedel is valued at between EUR200 million and EUR300 million, or some 10 to 12 times earnings before interest, taxes, depreciation and amortization, or Ebitda, of EUR20 million, people said. However, it is unclear whether any factories are included in the sale. Several people familiar with the situation said that Wedel is more likely to be bought by a strategic player than a private equity firm, which wouldn't have the same level of synergies that a large multinational or local company would bring. -By Marynia Kruk, Dow Jones Newswires; +48 663 33 18 33; [email protected] (Marietta Cauchi in London contributed to this article.) (END) Dow Jones Newswires June 09, 2010 10:17 ET (14:17 GMT)