CBY

After weeks of sitting on the sidelines while Cadbury played cat-and-mouse with Kraft Foods, Hershey is finally ready to make a bid for the U.K.-based chocolate maker. Sources close to the Hershey board say that the company will bid $17.9 billion for Cadbury.

Kraft faces an uphill battle in its bid for Cadbury. Now Hershey may make an offer for the U.K. company.

When Kraft offered $16 billion for Cadbury in September, the U.K. food company rejected it as insultingly low, and investors agreed. Now, with time running short and with rumors of other suitors in the hunt, the word is out that Kraft will increase its bid within days.

It has been expected for some time now. U.K. business authorities told Kraft (KFT) some weeks ago that it would need to make an official bid for Cadbury (CBY) or make no bid at all. Cadbury has been clever about maneuvering itself into a position to either stay independent or fetch a high price...