According to Bloomberg, the Hershey Company’s major shareholder turned down Mondelez International, Inc.’s initial buyout offer.
According to the news outlet, which cited unidentified people with knowledge of the situation, the ruling probably puts a stop to a takeover that would have resulted in a $50 billion merged business.
The Trust, which owns the bulk of Hershey’s Class B stock and over 80% of the voting power, deemed the bid too low, according to the sources who spoke to Bloomberg.
The Trust was established in 1905 and currently holds a majority stake in the well-known candy manufacturer Hershey Entertainment & Resorts. The boarding school for kids from low-income families in Derry Township is supported by the profits from the two enterprises.
After Betaville, a financial blog and subsidiary of the Financial Times, issued an undercooked alert last week, rumors of a takeover intensified.
According to unnamed sources, Bloomberg reported on Monday that the Chicago-based company Mondelez, which produces Ritz crackers and Oreo cookies, was pursuing Hershey Co.
The Derry Township Fortune 500 company, which produces Hershey’s Kisses, Kit Kats, and Reese’s Peanut Butter Cups, has previously been targeted by Mondelez. Hershey turned down Mondelez’s $23 billion bid in 2016.
Vital Knowledge’s Adam Crisafulli told Bloomberg that the revelation on Wednesday put a stop to any possible Hershey Co. merger.
Bloomberg failed to get in touch with Hershey, Mondelez, and the Trust on Wednesday.
Due to sluggish consumer spending and rising cocoa prices, Hershey reported third-quarter profits in November that were below expectations. Revenue dropped 1.4% to $2.9 billion, while adjusted profits per share for the period were $2.34.
Stories by
Sue Gleiter
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