Updated on Thursday, November 26, 2009, 21:04 IST Tags:Cadbury, Hershey

London: The charitable trust that controls US chocolate maker Hershey has approached the Pennsylvania Attorney General for a potential USD 17 billion bid for Cadbury, says a media report.

The Milton Hershey School Trust, which has been overseeing Hershey Co, has informed Pennsylvania Attorney General Tom Corbett about its interest in the UK confectioner, British daily The Financial Times said.

However, the Trust has given no details of the proposed offer, FT added.

FT quoted Corbett's spokesman as saying that the attorney general's office had been informed by the Trust that Hershey was considering buying out Cadbury but it had not sent any proposals.

"We will monitor any transaction to ensure that the assets and mission of the Milton Hershey School Trust are protected and preserved," Corbett's spokesman was quoted as saying.

As per Pennsylvania law, the state attorney general has broad powers to regulate charitable trusts in the state— a law that has been interpreted to allow the attorney general to block any transactions that would threaten the Trust's control of Hershey.

"The need for the attorney-general's approval has been seen as constraining Hershey's ability to issue stock that could dilute the Trust's voting control," the daily said.

PTI