U.S. chocolate maker Hershey is preparing a counterbid for Cadbury in an offer that would top the hostile takeover plan by U.S. food group Kraft , the Financial Times said on Wednesday.

The newspaper cited a person familiar with the matter, adding that a formal offer could be made within two weeks.

Hershey would give Byron Trott, a banker running his own investment firm, authorization to attract private equity investors, the FT said. On top, the Hershey Trust was preparing to make an equity investment of $1.25 billion.

(Reporting by Douwe Miedema)