Reports have speculated that Hershey Co. is preparing itself to step up efforts to prepare a takeover bid for British Cadbury PLC, and is looking to make a decision on the same after Kraft Foods Inc.'s last offer is made public.

Over the past few days, Hershey has reportedly been tied in talks with credit ratings firms with regards to the structuring of the bid so as to not hurt its investment-grade debt rating. Also, the company has been busy drafting commitment letters with its major lenders, JPMorgan Chase & Co. and Bank of America Corp., in order to effectively secure a loan package of over a billion dollars.

CEOs of Cadbury and Hershey, Todd Stitzer and David West, respectively, as well as boards of both the companies, have reportedly discussed a combination.

An offer by Hershey would challenge Kraft's hostile takeover bid of 10.9 Billion Pounds, would be put for a firm which is almost twice the size of the US Company.

Currently, Standard & Poor's has a negative outlook as far as Hershey's debts go, and the company has an A rating, which is five notches above junk.