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Hershey board rejects takeover bid from rival Mondelez

By Andrew V. Pestano and Doug G. Ware

HERSHEY, Pa., June 30 (UPI) -- The Hershey Company's board of directors unanimously rejected a takeover offer from rival Mondelez International on Thursday.

Mondelez, the parent company of Oreo-maker Nabisco, had offered to buy Hershey in what would have been a blockbuster candy mega-deal.

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Mondelez offered $107 per share for common Hershey stock in a half cash, half stock bid. Such a deal, though, required approval from the Hershey Trust, which holds 8.4 percent of the Hershey's stock and has 81 percent of the company's voting power.

After careful consideration of the offer, Hershey officials unanimously declined Mondelez's takeover.

"Following this review, the Board of Directors of the Company unanimously rejected the indication of interest and determined that it provided no basis for further discussion between Mondelēz and the Company," Hershey said in a news release Thursday.

The snack giants are the world's two best-known candy makers. Mondelez's portfolio includes snacks and confectionaries like Oreo and Chips Ahoy! cookies, Trident and Dentyne gums, Cadbury and Toblerone.

Pennsylvania-based Hershey had a market value of $21 billion before news of Mondelez's offer spread on Thursday, causing Hershey shares to surge by 15 percent. Mondelez had a market value of $69 billion.

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The Hershey Trust has previously been opposed to selling the company in the past.

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