Dairy Milk maker Cadbury would reject a £10.3 billion takeover bid from US chocolate firm Hershey, it has been reported.
Cadbury, which has already described a hostile £9.8 billion offer from Oreos and Toblerone maker Kraft as "derisory", is thought to be adamant that there would be no deal unless a much higher bid is tabled.
According to the Sunday Times Hershey, which is controlled by a charitable trust in Pennsylvania, is understood to be at an advanced stage of drawing up an offer.
This is thought to comprise of 10 billion US dollars (£6 billion) in cash, 2 billion dollars (£1.2 billion) in new Hershey shares and between 3 billion dollars (£1.8 billion) and 5 billion dollars (£3 billion) from investors.
Hershey already has a business relationship with Cadbury, holding a licence to make Dairy Milk bars and Cadbury Creme Eggs in the US.
It is considered to be a better fit to Cadbury's business and a counter bid could help the British chocolate maker trump the troublesome Kraft manoeuvre.
But Cadbury is still adamant it wants to stay independent unless the price is right.
"We're focused on delivering value to shareholders as a standalone pure-play confectioner," a spokeswoman said.
"However, we have always said that we would give proper consideration to any serious offer that delivers full value for the company.
"Unless and until we find ourselves in that situation we have nothing to comment upon."
