Swiss food giant Nestle may consider a bid for Britain's Cadbury to challenge a hostile US$16.3 dollars bid by Kraft Foods Inc and a potential move by Hershey, Bloomberg reported.

Nestle is still weighing its options and may decide against a bid, Bloomberg said, citing two unnamed people with knowledge of the matter.

Nestle declined to comment.

Italian chocolate maker Ferrero and US-based Hershey have teamed up and said they were reviewing a possible offer for Cadbury.

Analysts view Nestle as a potential suitor for Cadbury.