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Hershey Media Report 7/24/16
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Hershey Trust Reaches Tentative Deal to Reform Its Governance
Jul 23, 2016 | Bloomberg
By Nick Turner
Hershey Trust Co., the $12 billion charity that controls the Hershey chocolate company, reached a tentative agreement with the Pennsylvania attorney general, a move that would reform the governance practices of the controversial organization. -
Hershey Trust agrees to changes amid allegations of corruption
Jul 23, 2016 | UPI
By Eric DuVall
Hershey Trust Co., a $12 billion charitable organization that controls the Hershey Chocolate empire, has agreed in principle to a deal with the Pennsylvania attorney general's office to institute governance reforms in the wake of a failed $23 billion takeover attempt. -
Hershey Trust is Close to Reaching Tentative Settlement with Pennsylvania Attorney General’s Office
Jul 23, 2016 | Top News
By Cristina Warne
Hershey Trust Company, the charitable trust which controls Hershey has is close to reaching a tentative deal with the Pennsylvania attorney general, which if works out will result in significant changes in the company's governance. It will also possibly keep away a possible legal battle. -
The Hershey Company’s Trust and Pennsylvania Attorney General Reach Agreement
Jul 24, 2016 | CDA News
By Evelyn Tiondi
Reuters reported that the tentative settlement, concluded on Friday July 22, 2016, aimed at averting a legal row in exchange for reforms regarding the company’s operations. The tentative agreement is expected to resolve key governance issues, but will necessitate some resignations from the board. The New York Times described the settlement as a tentative agreement between The Hershey Company Trust and the attorney general. Final details would emerge from the ongoing consultations between the two parties. -
PA Attorney General’s Office Reaches Secret Settlement With Hershey Trust
Jul 23, 2016 | Stock News USA
By Jamie Simon
According to sources, the Hershey Trust, which was created for impoverished children, has been working with the Pennsylvania Attorney General’s office to reach a deal. They are going to settle their latest inquest of the charity with a partial board resignation. Both the Attorney General’s Office and the Hershey board of 9-members, confirmed an agreement was struck, but did not supply any details. -
Could a Hershey sale be back on the table after agreement with AG's office?
Jul 23, 2016 | Pennsylvania Live
By Hope Stephan
Through their spokesman Saturday, members of the Hershey Trust board of directors had little to say about a pending agreement with the Pennsylvania Attorney General's Office over how the board operates — other than to confirm that an agreement exists. -
Hershey Trust to Reach Settlement with PA AG
Jul 24, 2016 | CNBC
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Hershey Trust Reaches Tentative Deal to Reform Its Governance
Jul 23, 2016 | Bloomberg
By Nick Turner
Hershey Trust Co., the $12 billion charity that controls the Hershey chocolate company, reached a tentative agreement with the Pennsylvania attorney general, a move that would reform the governance practices of the controversial organization.
“We have reached an agreement in principle and are working on the final details in productive discussions with the office of the attorney general,” a spokesman for the trust said in an e-mailed statement. The attorney general’s office didn’t immediately respond to a request for comment after business hours.
The trust, which has faced allegations of lavish spending by board members in recent years, controls the fate of the maker of Hershey Kisses and Reese’s Peanut Butter Cups through its voting shares. Established in the early 1900s by Milton Hershey, the organization runs a school for low-income students and oversees the Hershey Entertainment & Resorts company.
Scrutiny of the trust grew last month after Hershey rejected a $23 billion bid by Mondelez International Inc. The charitable organization controls 81 percent of Hershey’s voting shares, so any deal would have to get its approval. That’s made the effort to change its governance practices of strong interest to Hershey investors.
The chocolate maker, struggling with an ill-fated expansion in China and sluggish U.S. sales, has long been seen as a takeover target -- with the trust serving as the main obstacle to a buyout.
Joan Steel, a Hershey Trust board member since 2012, resigned earlier this month.
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Hershey Trust agrees to changes amid allegations of corruption
Jul 23, 2016 | UPI
By Eric DuVall
HERSHEY, Pa., July 23 (UPI) -- Hershey Trust Co., a $12 billion charitable organization that controls the Hershey Chocolate empire, has agreed in principle to a deal with the Pennsylvania attorney general's office to institute governance reforms in the wake of a failed $23 billion takeover attempt.
The Hershey Trust was set up by the company's founder, Milton Hershey, in the early 1900s and owns a 30 percent stake in the company and controls 81 percent of its voting power.
Members of the trust's 10-member board of directors have faced scrutiny recently for lavish salaries, exorbitant travel reimbursements and setting board term limits of longer than 10 years.
Hershey has struggled of late with an ill-fated expansion in China and sluggish U.S. sales, Bloomberg News reported.
In addition to its majority share of Hershey, the Hershey Trust also oversees the Hershey Entertainment & Resorts company, which operates a resort and amusement park in Hershey, Pa. The trust also operates the Milton Hershey school for some 2,000 underprivileged children, where all the charity's profits are supposed to go.
The Wall Street Journal reported Saturday under terms of the agreement, several Hershey Trust board members have agreed to step down at the end of the year.
The trust's operations came under scrutiny recently after it blocked a $23 billion takeover offer from Mondelez International Inc., the makers of Oreo cookies and Ritz crackers. The Hershey board, which includes three members of the Hershey Trust Co. board, unanimously rejected the Mondelez offer.
The company has faced pressure from the community to remain an independent business rather than succumb to a takeover. The changes in governance structure at the Hershey Trust, long seen as a backstop against any potential sale, could make a takeover process easier, though the Pennsylvania attorney general's office could take the trust to court to halt a sale if it deems it against the public interest.
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Hershey Trust is Close to Reaching Tentative Settlement with Pennsylvania Attorney General’s Office
Jul 23, 2016 | Top News
By Cristina Warne
Hershey Trust Company, the charitable trust which controls Hershey has is close to reaching a tentative deal with the Pennsylvania attorney general, which if works out will result in significant changes in the company's governance. It will also possibly keep away a possible legal battle.
In case a final deal is reached, the trust and the Pennsylvania attorney general Kathleen G. Kane will be able to conclude a long time dispute which stems from an investigation by the attorney general's office. Reportedly, this investigation involves issues like excess payment to the board members, reimbursement of costly travel costs and the time stretches for their terms which cross a ten year limit.
A deadline has been set as July 31 by Ms. Kane for the Hershey's trust company to formally solve the issues that stem from an investigation into the organization.
Sources say, if a settlement is reached, many of the board members will resign by this year's end. In the last few months four of the board members of the trust have already resigned.
The trust which is the largest shareholder of Hershey Co. supervises billions of dollars which are spent on a local, nonprofit school for children. It the changes in governance are agreed upon, that would eventually have a significant effect on the chocolate company's future.
About one week back, Mondelez International Inc., the company that makes Oreo cookies and Ritz crackers came up with a $23 billion bid for Hershey but it was rejected by Hershey's corporate board. With the expected changes, a way could be paved for potential bidders in the future.
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The Hershey Company’s Trust and Pennsylvania Attorney General Reach Agreement
Jul 24, 2016 | CDA News
By Evelyn Tiondi
Reuters reported that the tentative settlement, concluded on Friday July 22, 2016, aimed at averting a legal row in exchange for reforms regarding the company’s operations. The tentative agreement is expected to resolve key governance issues, but will necessitate some resignations from the board. The New York Times described the settlement as a tentative agreement between The Hershey Company Trust and the attorney general. Final details would emerge from the ongoing consultations between the two parties.
Under the agreement, a 10-year term limit for trustees was set. Three trustees are expected to step down by the end of the year ─ Robert F. Cavanaugh, James E. Nevels and Joseph M. Senser. More immediate resignations involve Velma A. Redmond, the chairwoman of the trust, and James M. Mead, who are set to resign by the end of 2017. The agreement also featured caps on the trustees’ compensation. However, this does not concern the salaries of trustees at Hershey and other affiliates.
According to Reuters, as the trust’s sole overseer, the attorney general’s office had issued an ultimatum to the trustees, whereby failure to arrive at a settlement before the end of July would see them barred from office. It is widely expected that the deal will calm the trust, which has experienced internal strife and confrontation with the attorney general’s office in recent years.
In 2013, the trust reached a reform agreement with the attorney general’s office, but turmoil has been experienced ever since. The expected stability arising from the recent agreement could pave the way for Mondelez International Inc, the maker of Oreo and Cadbury chocolate, to offer a new acquisition approach to The Hershey Company. In June, Mondelez extended a $23 billion cash and stock offer to Hershey’s, which was rejected. Reuters reported that in the wake of the agreement, the trust may be more willing to review its ownership of Hershey. An estimated one-third of Hershey is owned by the trust. For more CDA News, follow our tweets on Twitter and like us on Facebook.
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PA Attorney General’s Office Reaches Secret Settlement With Hershey Trust
Jul 23, 2016 | Stock News USA
By Jamie Simon
According to sources, the Hershey Trust, which was created for impoverished children, has been working with the Pennsylvania Attorney General’s office to reach a deal. They are going to settle their latest inquest of the charity with a partial board resignation. Both the Attorney General’s Office and the Hershey board of 9-members, confirmed an agreement was struck, but did not supply any details.
One of the stipulations released however was that three of the Hershey board members would leave their positions because they had been affiliated with it for more than 10 years. On top of that, two more board members will be with the trust for 10 years in 2017, which likely will open the door for their pending exit also. A spokesman confirmed that the agreement was made, but final details are still being negotiated.
The Attorney General first began the investigation into the $12-billion charity earlier in 2016 over an initial compliance with a settlement agreement from 2013. The word released was that the board had hired its own legal representatives and contributed millions of dollars with their own investigations of board members. This raised serious questions as to whether the board members violated their self-compensation agreements as dictated by the settlement of 2013. It also raised speculation on why they were paying to investigate each other.
Throughout the drama and legal woes, Mondelez International Inc. has noted its desire to purchase the Hershey Company for just-over $20-billion. The trust portion of the company controls the Hershey Company via super-voting. Though the board rejected the Mondelez deal, experts note that most likely the company will return with a higher counter-offer to still make the purchase.
The trust finances and directs the Milton Hershey School dedicated to impoverished children. Currently the school serves 2,000 children.
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Could a Hershey sale be back on the table after agreement with AG's office?
Jul 23, 2016 | Pennsylvania Live
By Hope Stephan
Through their spokesman Saturday, members of the Hershey Trust board of directors had little to say about a pending agreement with the Pennsylvania Attorney General's Office over how the board operates — other than to confirm that an agreement exists.
Word of that agreement, however, has renewed speculation that a pending change in board governance could make a sale possible. The Hershey Trust controls the largest block of Hershey Company stock and has rebuffed offers in the past, including one in June.
"We have reached an agreement in principle and are working on the final details in productive discussions with the Office of the Attorney General," board spokesman Kent Jarrell said in an email this morning.
Jarrell, executive director of crisis management firm APCO Worldwide, based in Washington, D.C., also acts as spokesman for the board of the Milton Hershey School, which has seen its own share of troubles in recent years. The trust is responsible for managing its billions in assets for the benefit of the school.
Friday night, First Deputy Attorney General Bruce L. Castor Jr. announced that an agreement in principal had been reached with the board earlier in the day, a week before the July 31 deadline set by the AG's office as it sought the resignations of three board members.
"Yesterday, I met with board members and a lawyer for the Trust, along with our people, and I agreed on behalf of the attorney general in principal to a series of changes that the Trust would implement," Castor said in an email. "When that is reduced to writing, and if it is signed by us and them, Pennsylvania Attorney General Kathleen Kane will make the terms public."
There was no indication of when the agreement would be finalized and made public.
The Wall Street Journal reported Friday night the changes in board governance would be "significant" and "would lead to resignations of some trust board members ... The settlement would include enforcing a cap on compensation and term limits of board members." It based its report on unnamed "people familiar with the matter."
Four board members have resigned in the last year, including one just two weeks ago.
The newspaper also said the changes could open the door to a renewed bid by Mondelez to purchase The Hershey Co. or from other suitors.
The Chicago Tribune reported Friday that Mondelez was considering a second trybefore another company could knock it out of the running.
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Hershey Trust to Reach Settlement with PA AG
Jul 24, 2016 | CNBC
View clip here: http://app.criticalmention.com/bits/wordplay/#/token=0023c1dd-3964-4d69-9426-d9f6b395647b&channelId=8062&uuid=0532b65e-c78e-4f63-b4e7-fbecaf77e284&keyword=trust,hershey
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