Mondelez makes $23 Billion takeover bid for Hershey
Mondelez International Inc. made a roughly $23 billion bid for Hershey Co. in an effort to create the world’s largest candy maker at a time when both companies’ sales are under pressure.
Mondelez, which makes Oreo cookies and Cadbury chocolate bars, recently sent a letter to Hershey proposing a tie-up at $107 a share, half in cash and half in stock. Hershey’s board unanimously rejected the bid Thursday and said it “provided no basis for further discussion.”
Still, Hershey shares surged 17% to $113.49 on news of the offer—first reported by The Wall Street Journal—remaining elevated even after the company rejected the bid, in an indication investors believe Mondelez won’t be discouraged. Mondelez shares gained 6% to $45.51, giving the snack giant a market value of more than $70 billion.
A takeover of Hershey, known for its namesake Kisses and chocolate bars, would face obstacles. Any deal would require the approval of the Hershey Trust, which holds 8.4% of its common stock and 81% of its voting power and has opposed a sale in the past.
A spokesman for the trust, whose board includes three Hershey directors, declined to comment.
In preparing its bid, which was disclosed in a private letter last week, Mondelez took steps to win over the trust. The Deerfield, Ill., company pledged to protect jobs, locate the merged company’s global chocolate headquarters in Hershey, Pa., and rename it Hershey, said a person familiar with the matter.
good money in candy..
“Mondelez International Inc. made a roughly $23 billion bid for Hershey Co. in an effort to create the world’s largest candy maker at a time when both companies’ sales are under pressure.”
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