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Hershey Media Report 8/29/16
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Mondelez Abandons Its Efforts to Combine With Hershey
Aug 29, 2016 | New York Times
By Leslie Picker
For two brief months, it looked as if there was a possibility of a more than $20 billion takeover that would combine the makers of Oreos and Hershey Kisses. But chocolate lovers’ hopes were dashed on Monday, when the deal discussions ended. -
UPDATE: Snack Maker Mondelez Drops Pursuit of Hershey
Aug 29, 2016 | Wall Street Journal
By Tess Stynes
Mondelez International Inc. has ended talks regarding a possible acquisition of HersheyCo., saying it determined there was “no actionable path forward” following recent shareholder developments at the chocolate maker. Mondelez made a roughly $23 billion bid for Hershey in June in an effort to create the world’s largest candy maker, an offer Hershey’s board unanimously rejected. The maker of Oreo cookies and Cadbury chocolate bars had proposed a tie-up at $107 a share, half in cash and half in stock. -
UPDATE: Mondelez no longer pursuing merger with Hershey
Aug 29, 2016 | Reuters
Mondelez International Inc said it was "no longer pursuing" the acquisition of Hershey Co, a month after the Pennsylvania Attorney General's office unveiled the terms of a reform deal with the trust that controls Hershey. -
UPDATE: Hershey falls more than 11% after Mondelez says it has ended merger talks
Aug 29, 2016 | Associated Press
Oreo cookie maker Mondelez says it has ended discussions of a possible merger with Hershey, a combination that would have created a global powerhouse selling some of the world's best known chocolates and snacks. -
Mondelez Gives Up Its Pursuit Of Hershey Merger
Aug 29, 2016 | Forbes
By Maggie McGrath
The overture heard ’round the chocolate world has turned into the union that will never be: Cadbury maker Mondelez International announced Monday that it is ending its discussions to buy The Hershey HSY +0.71% Company. Mondelez submitted a $107 per-share takeover bid back in June, but Hershey rejected the $22.8 billion cash-and-stock deal, saying the offer provided “no further basis for discussion” between it and Mondelez. Two months later, Mondelez has come to the same conclusion. -
UPDATE: Mondelez says it won’t buy Hershey, and Hershey’s shares are crashing
Aug 29, 2016 | Business Insider
By Akyin Oyedele
Mondelez has abandoned talks to buy candy maker Hershey in a $23 billion deal. In a statement on Monday, the food and beverage company said that it did not see a path toward an agreement "taking into account recent shareholder developments at Hershey." -
Mondelez Abandons Hershey Talks Two Months After Bid Was Snubbed
Aug 29, 2016 | Bloomberg
By Nick Turner
Mondelez International Inc. is walking away from takeover discussions with Hershey Co. two months after its $23 billion bid was rejected by the chocolate maker. Seeing “no actionable path forward toward an agreement,” Mondelez has ended talks over a merger, according to a statement on Monday. Hershey’s board had said on June 30 that it unanimously rejected Mondelez’s bid. -
Mondelez ends bid for Hershey
Aug 29, 2016 | Chicago Tribune
By Gregg Trotter
Deerfield-based Mondelez International has ended its efforts to acquire the Hershey Co., according to a Mondelez news release Monday. -
Hershey crashes 11% after chocolate merger talks end
Aug 29, 2016 | CNN Money
By Matt Egan
So much for that much-hyped chocolate marriage between Hershey and Cadbury. Hershey's stock crashed 11% Monday evening after Cadbury owner Mondelez revealed it's no longer pursuing a deal to acquire the iconic American chocolate maker. -
Hershey Falls After Mondelez Drops Pursuit of Combination: Chart
Aug 29, 2016 | Bloomberg
By Sophie Caronello
So much for a sweet deal. Shares of Hershey Co. dropped in extended trading after Mondelez International Inc. said it was no longer pursuing a combination with the chocolate maker. -
Hershey and company behind Oreos won't join forces
Aug 29, 2016 | USA Today
By Charisse Jones
Mondelez International (MDLZ) has nixed a potential deal with The Hershey Company (HSY) that would have brought Oreo cookies and Reese's Peanut Butter Cups under one roof. -
Mondelez abandons Hershey takeover bid
Aug 29, 2016 | Financial Times
By Lindsay Whipp
Mondelez International has abandoned its pursuit of chocolate-making rival Hershey,ending months of speculation over whether the producer of Oreos and Cadbury’s would increase its offer for the tightly-controlled company. -
Mondelez Drops Hershey Takeover Bid
Aug 29, 2016 | Fortune
By John Kell
Snacking giant Mondelez has ended the company’s short-lived bid for chocolate giant Hershey, saying it had determined there was “no actionable path forward toward an agreement.” -
Hershey Isn't Sweet Enough for Mondelez Anyway
Aug 29, 2016 | Bloomberg
By Brooke Sutherland
That's the way the chocolate melts. Mondelez, the $67 billion maker of Oreos and Cadbury eggs, said late Monday that it's giving up on takeover discussions with rival confectioner Hershey. That's not great news for investors in the would-be target, who are now facing a return to Hershey's flatlined stock price and slow-growth future. But Mondelez shareholders should be happy that in the end, it didn't get its treat. -
Mondelez abandons pursuit of U.S. chocolate maker Hershey
Aug 29, 2016 | Reuters
By Greg Roumeliiotis
Mondelez International Inc (MDLZ.O), the maker of Oreo cookies and Cadbury chocolates, said it was no longer pursuing the acquisition of Hershey Co (HSY.N), two months after the U.S. chocolate company turned down its $23 billion cash-and-stock bid. The abandoned deal, which would have created the world's largest confectioner, underscores the grip that a charitable trust has on the maker of Hershey's Kisses and Reese's Peanut Butter Cups. The trust which controls Hershey was set up by the company's founder over a century ago to fund and run a school for underprivileged children. -
Hershey’s Failed Deal Reinforces Image as a Company Not for Sale
Aug 29, 2016 | Bloomberg
By Craig Giammona and Ed Hammond
The latest failed acquisition of Hershey Co. has renewed the chocolate maker’s reputation as a company that can’t be bought. After Mondelez International Inc. abandoned merger discussions on Monday, Hershey shares plunged as much as 12 percent and left investors with a familiar taste. For years, Hershey has been the subject of takeover speculation. And for years, deal talks have sputtered and died. -
Mondelez ends effort to acquire Hershey Co.
Aug 29, 2016 | Lancaster Online
By Tim Mekel
Mondelez International said Monday it has ended efforts to buy The Hershey Co. Mondelez’s interest in Hershey was disclosed by The Wall Street Journal on June 30. That same day, Hershey announced it had rejected a $23 billion offer from Mondelez. -
Mondelez withdraws bid for Hershey; Hershey's stock crashes 11%
Aug 29, 2016 | WGAL News 8
Hershey's stock crashed 11% Monday evening after Cadbury owner Mondelez revealed it's no longer pursuing a deal to acquire the iconic American chocolate maker. In June, Hershey rejected a $107-a-share takeover offer from Mondelez. The offer represented a 10% premium to Hershey's closing price at the time. -
Mondelez drops talks on possible $22.3B takeover of Hershey
Aug 29, 2016 | Philadelphia Inquirer
By Bob Fernandez
Global snacks giant Mondelez International Inc. ended negotiations on a potential $22.3 billion takeover of Pennsylvania chocolate-maker Hershey Co., saying there was "no actionable path forward." -
Mondelez won't pursue Hershey
Aug 29, 2016 | Central Penn Business Journal
By Roger DuPuis
Hershey-coated Oreos? Forget about it. Illinois-based Mondelez International, maker of the popular chocolate cookies and a wide range of other snack foods, today announced that it is no longer pursuing a combination with The Hershey Co. -
Hershey -10% AH after Mondelez ends pursuit
Aug 29, 2016 | Seeking Alpha
Mondelez International (NASDAQ:MDLZ) announces it has ended discussions with Hershey (NYSE:HSY) regarding a potential merger after factoring in recent shareholder developments at the candy company. -
Hershey shares dive after Mondelez calls off deal talks
Aug 29, 2016 | Market Watch
By Jeremy C. Owens
Mondelez International Inc. MDLZ, +3.28% announced Monday that it is no longer negotiating with The Hershey Co. HSY, -11.27% on a potential acquisition, sending Hershey shares plunging. -
UPDATE: Hershey (HSY) Stock Stumbles in After-Hours Trading, Mondelez Not Pursuing Deal
Aug 29, 2016 | The Street
By Kaya Yurieff
Shares of Hershey (HSY) were falling 11.35% to $99 in after-hours trading on Monday after Mondelez (MDLZ) said it is no longer pursuing a combination with the company. "As the world's leading snacking company, we remain focused on successfully executing our strategy to deliver both sustainable top-line growth and significant margin expansion and are well-positioned to continue to deliver value to our shareholders," Mondelez CEO Irene Rosenfeld said in a statement. -
Hershey Shares Plunge Over 11% after Mondelez Says It Won’t Pursue Takeover
Aug 29, 2016 | EFT Daily News
Candy-making giant Hershey Co (NYSE:HSY) shares are plunging in after-hours trading today, after fellow food maker Mondelez said it was no longer in talks to acquire the company. -
Hershey Plunges After Mondelez Pulls Offer To Buy Company
Aug 29, 2016 | Zero Hedge
By Tyler Durden
Three months after Mondelez shocked the world with the latest proposed mega-merger, when it offered $23 billion to acquire Pennsylvania's iconic Hershey, in a bid to make the world's biggest candy maker combining the candy industry’s second- and fifth-largest players by revenue, moments ago, the snack giant, which makes Oreo cookies and Cadbury chocolate bares, announced it was no longer pursuing the combination. -
Mondelez Drops Plans to Acquire Hershey
Aug 29, 2016 | Progressive Grocer
Mondelēz International Inc. has ended discussions with The Hershey Co. regarding a possible combination of the two companies. -
Hershey (HSY) May Still Be A Good Buy Despite Loss of Mondelez Bid, Says CNBC's Guy Adami
Aug 29, 2016 | The Street
By Natalie Walters
Investors shouldn't rush to sell off shares of Hershey (HSY) , even though Mondelez (MDLZ) announced it's no longer pursuing a combination with the company, CNBC "Fast Money" trader Guy Adami said on "Closing Bell" Monday. -
Here's Why Hershey (HSY) Stock Plummeted Today
Aug 29, 2016 | Zacks.com
By Ryan McQueeney
Shares of chocolate maker The Hershey Co. (HSY - Analyst Report) abruptly dropped over 11% in after-hours trading Monday after Mondelez International (MDLZ - Analyst Report) announced that it is no longer negotiating a possible takeover of the candy giant. -
Hershey Co. (HSY) Is Tumbling After Mondelez Talks Fall Apart
Aug 29, 2016 | RTT News
Mondelez International Inc. (MDLZ) announced after the bell Monday that it has put an end to discussions with Hershey Co. (HSY) regarding a possible combination of the two companies. Chairman and CEO Irene Rosenfeld stated "we determined that there is no actionable path forward toward an agreement." -
Mondelez drops bid for Hershey
Aug 29, 2016 | Crain's Chicago Business
By Peter Frost
Mondelez International said today it is ending flirtation with chocolate giant Hershey, citing “recent shareholder developments” as its reason for walking away. The Deerfield-based snacks company made an approach in June to take over Hershey for about $23.2 billion, a 10 percent premium to the company's stock the day the news was announced. The Hershey board unanimously dismissed the bid. -
Mondelez (MDLZ) Stock Up in After-Hours Trading, No Longer Seeking Hershey Deal
Aug 29, 2016 | The Street
By Rachel Aldrich
hares of Mondelez (MDLZ) were gaining in after-hours trading on Monday after the company said it was no longer pursuing a deal with Hershey (HSY). The Deerfield, IL-based snack manufacturer made a $23 billion bid for the company early in July, which Hershey later rejected. -
Hershey And 6 Others Stocks Moving In Monday's After-Hours Session
Aug 29, 2016 | Benzinga
By Javier Hasse
Brief mention of Hershey and Mondelez in the context of shifting stocks. Relevant portion pasted below. -
Mondelez Abandons Hershey Takeover Bid
Aug 29, 2016 | Vending Times
By Nick Montano
Snack giant Mondelēz International Inc. today announced that it has ended discussions with Hershey Co. regarding a possible combination of the two companies. -
Mondelez drops merger plans with Hershey
Aug 29, 2016 | AFP
US industrial snacks giant Mondelez International said Monday it had dropped plans to merge with chocolatier The Hershey Company. The announcement came nearly two months after Hershey, the maker of Reese's Peanut Butter Cups and Hershey's Kisses, rejected a $23 billion takeover offer from Mondelez. -
Hershey shares soared to all-time highs back in June after Mondelez, the self-proclaimed world leader in “snacking,” offered to take over the company in a cash and stock deal worth nearly $23 billion. Mondelez’s initial offer was unanimously rejected by H
Aug 29, 2016 | City A.M.
By Mark Sands
Mondelez, which re-branded from Kraft Foods in 2012, revealed it had dropped the plans in a statement tonight. The decision comes after the Mondelez had a $23bn (£17.6bn) takeover offer for Hershey rejected in June. -
Snack-maker Mondelez drops bid to merge with Hershey's
Aug 29, 2016 | UPI
By Doug G. Ware
After months of negotiations, Mondelez International, one of the world's leading snack companies, announced Monday it is no longer pursuing a merger with the Hershey Company. The two companies had discussed a possible joining of forces for months but Hershey rejected a takeover bid worth $107 per stock share in June. -
Closing Bell
Aug 29, 2016 | CNBC
View clip here: http://beta.criticalmention.com/app/#clip/view/23915744?token=0c458ffc-d12b-491a-b3ee-67d7c47290af -
What'd You Miss?
Aug 29, 2016 | Bloomberg
View clip here: http://beta.criticalmention.com/app/#clip/view/23915764?token=0c458ffc-d12b-491a-b3ee-67d7c47290af -
After The Bell
Aug 29, 2016 | FBN
View clip here: http://beta.criticalmention.com/app/#clip/view/23915775?token=0c458ffc-d12b-491a-b3ee-67d7c47290af -
What'd You Miss
Aug 29, 2016 | Bloomberg
View clip here: http://beta.criticalmention.com/app/#clip/view/23915778?token=0c458ffc-d12b-491a-b3ee-67d7c47290af -
Closing Bell
Aug 29, 2016 | CNBC
View clip here: http://beta.criticalmention.com/app/#clip/view/23915796?token=0c458ffc-d12b-491a-b3ee-67d7c47290af
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Mondelez Abandons Its Efforts to Combine With Hershey
Aug 29, 2016 | New York Times
By Leslie Picker
For two brief months, it looked as if there was a possibility of a more than $20 billion takeover that would combine the makers of Oreos and Hershey Kisses. But chocolate lovers’ hopes were dashed on Monday, when the deal discussions ended.
Mondelez International, the owner of snack brands like Oreo and Nabisco, said on Monday that it was no longer seeking to acquire the Hershey Company. Hershey rebuffed a $23 billion offer from Mondelez in June, but on Monday it became apparent that they had restarted talks more recently.
“Following additional discussions, and taking into account recent shareholder developments at Hershey, we determined that there is no actionable path forward toward an agreement,” Irene B. Rosenfeld, the chairwoman and chief executive of Mondelez, said in a statement. “While we are disappointed in this outcome, we remain disciplined in our approach to creating value, including through acquisitions, and confident that our advantaged platform positions us well for top-tier performance over the long term.”
Shares of Hershey tumbled almost 12 percent in after-hours trading, while those of Mondelez gained about 3 percent.
Mondelez’s offer in June consisted of $107 in cash and stock for every Hershey share — a 10 percent premium at the time.
Over the last few weeks, Mondelez floated an offer of about $115 a share, according to a person with knowledge of the talks. Hershey indicated that the figure had to be at least $125 to continue negotiations, said the person, who was not authorized to discuss the talks publicly.
That gap in pricing, as well as uncertainty surrounding the status of Hershey’s largest shareholder, were the primary reasons the bid was abandoned.
A representative from Hershey confirmed that there were additional communications with Mondelez and that Mondelez was no longer pursuing a deal. She declined to comment further.
The Hershey Trust Company, which wields 81 percent of the voting power of Hershey shares, has been a thorn in many of the company’s deal-making efforts in years past. That was true when Wm. Wrigley Jr. Company wanted to buy Hershey in 2002, and again when Hershey wanted to buy Cadbury eight years later.
The charitable trust votes Hershey shares on behalf of the Milton Hershey School for underprivileged children, which was started in 1909 and named for the company’s founder. More recently, the trust has come under fire over corporate governance mishaps.
In July, the trust reached a settlement with the Pennsylvania attorney general, which restricted the amount of time directors could remain on the board as well as their compensation. The trust’s board, which has already experienced tremendous turnover, will be reshaped as the agreement requires three trustees to step down by the end of the year. Two others will remain until the end of 2017.
Mondelez had offered other concessions to make a deal work, including keeping jobs and moving the combined entity’s operations to Hershey, Pa. Mondelez also planned to keep the Hershey name.
Mondelez, which was spun out of Kraft Foods in 2012, has had to contend with the wishes of its own shareholders. Two of the biggest are prominent hedge funds: Trian Fund Management, led by Nelson Peltz, and Pershing Square Capital Management, led by William A. Ackman.
Mr. Peltz, who took a seat on Mondelez’s board in 2014, had been pushing for a merger between PepsiCo and Mondelez, and then a spinoff of its snack operations with Mondelez’s. He ultimately dropped this plan and recentlysold his stake in Pepsi.
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UPDATE: Snack Maker Mondelez Drops Pursuit of Hershey
Aug 29, 2016 | Wall Street Journal
By Tess Stynes
Mondelez International Inc. ended its bid to acquire Hershey Co. after the famed chocolate-bar maker rebuffed a new takeover offer and indicated it would be difficult to strike a deal before next year.
Mondelez said in a statement after the market closed Monday that it determined there was “no actionable path forward” in its bid to buy its smaller rival.
The Wall Street Journal reported in June that Mondelez made a roughly $23 billion bidfor Hershey, a tie-up that would create the world’s largest candy maker. Hershey rejected the offer, which amounted to $107 a share, half in cash and half in stock.
Mondelez Chief Executive Irene Rosenfeld privately indicated to Hershey officials a willingness to raise the bid to $115 a share last week, according to a person familiar with the matter. Hershey responded that the starting point for discussions would need to be $125 a share. Hershey also indicated that the trust that controls the company, which has been in turmoil, would need to complete a reconstitution before there could be a deal—something unlikely to happen until next year, this person added.
Both Hershey and Mondelez, which is based in Deerfield, Ill., have been under pressureamid a trend toward more-healthy eating and other factors.
Any takeover of Hershey, known for its namesake Kisses and chocolate bars, faced multiple obstacles. A deal would require the approval of the Hershey Trust, its largest shareholder, which has opposed a sale in the past.
Ms. Rosenfeld said in prepared remarks Monday that while the company was disappointed, it remains focused on its efforts to deliver sustainable sales growth and stronger margins. Mondelez will be disciplined in its approach to generating value, including through acquisitions, she added. Indeed, Mondelez called off the pursuit because the deal was attractive but not essential and because it was eager to avoid overpaying, the person said.
Hershey shares slumped on the news, falling more than 10% after hours to under $100 a share after closing at $111.67. Mondelez, meanwhile, rose 3.6% after closing at $43.04.
The maker of Oreo cookies and Cadbury chocolate plans to provide more details at an upcoming industry conference on Sept. 7.
The Journal reported last month that the Hershey Trust, which oversees billions of dollars for a local, nonprofit school had agreed to make significant governance changes that could affect the future of the chocolate company, citing people familiar with the matter. The trust agreed on terms of a settlement with Pennsylvania’s top law-enforcement officer, which has been investigating the trust board over allegations of excessive compensation and conflicts of interest.
Earlier in July a board member of the trust controlling Hershey resigned, another sign of uncertainty at the famous chocolate maker.
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UPDATE: Mondelez no longer pursuing merger with Hershey
Aug 29, 2016 | Reuters
Mondelez International Inc said it was "no longer pursuing" the acquisition of Hershey Co, a month after the Pennsylvania Attorney General's office unveiled the terms of a reform deal with the trust that controls Hershey.
Shares of Mondelez, the maker of Oreo cookies and Cadbury chocolates, rose nearly 4 percent in extended trading on Monday, while Hershey's shares plunged about 12 percent.
Hershey rejected a $23 billion cash-and-stock offer by Mondelez in June.
"Following additional discussions, and taking into account recent shareholder developments at Hershey, we determined that there is no actionable path forward toward an agreement," Mondelez Chief Executive Irene Rosenfeld said on Monday.
The reform agreement for Hershey Trust came after an investigation of several months by the Pennsylvania Attorney General's office over the charitable trust's governance, compensation and expenses.
The trust, set up by Hershey's eponymous founder a century ago, holds 81 percent of the company's voting stock and a sale is impossible without its approval.
"While we are disappointed in this outcome, we remain disciplined in our approach to creating value, including through acquisitions," Rosenfeld said on Monday.
(Reporting by Gayathree Ganesan and Sruthi Shankar in Bengaluru; Editing by Kirti Pandey)
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UPDATE: Hershey falls more than 11% after Mondelez says it has ended merger talks
Aug 29, 2016 | Associated Press
Oreo cookie maker Mondelez says it has ended discussions to buy The Hershey Co, a combination that would have created a global powerhouse selling some of the world's best known chocolates and snacks.
Hershey had said in June that it rejected a preliminary takeover bid from Mondelez International Inc. valued at roughly $22.3 billion, according to FactSet. It said at the time that the offer provided "no basis for further discussion." A representative for Hershey did not immediately respond to a request for comment Monday. A deal would have been subject to the Hershey Trust, a controlling shareholder.
Hershey shares slid 11 percent in after-hours trading, to $99. Mondelez shares added 3.4 percent, to $44.50, in extended trading.
In a statement, Mondelez CEO Irene Rosenfeld said the company decided "there is no actionable path forward toward an agreement" following additional discussions.
Mondelez, based in Deerfield, Illinois, makes Nabisco cookies, Cadbury chocolate and Trident gum. The company was created after a split from Kraft Foods, which has since gone on to combine with ketchup maker Heinz to create the Kraft Heinz Co.
Back in June, The Wall Street Journal had reported that Mondelez told Hershey it would take the chocolate maker's name and move its global headquarters to Hershey, Pennsylvania as part of the deal. The acquisition would have made the combined company the candy industry's largest player, according to Euromonitor International, passing the current No. 1, Mars Inc.
The deal was seen as complementary in part because Mondelez gets most of its revenue from overseas, while Hershey gets most of its revenue from North America.
The offer to buy Hershey came as the charitable trust that controls the company has been in turmoil. In July, the trust said a board member was resigning. Later, Pennsylvania's attorney general said it reached an agreement with the trust that involved five board members leaving, and limiting compensation. The agreement came from an investigation into the trust's compliance with a 2013 agreement.
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Mondelez Gives Up Its Pursuit Of Hershey Merger
Aug 29, 2016 | Forbes
By Maggie McGrath
The overture heard ’round the chocolate world has turned into the union that will never be: Cadbury maker Mondelez International announced Monday that it is ending its discussions to buy The Hershey HSY +0.71% Company.
Mondelez submitted a $107 per-share takeover bid back in June, but Hershey rejected the $22.8 billion cash-and-stock deal, saying the offer provided “no further basis for discussion” between it and Mondelez. Two months later, Mondelez has come to the same conclusion.
“Our proposal to acquire Hershey reflected our conviction that combining our two iconic American companies would create an industry leader with global scale in snacking and confectionery and a strong portfolio of complementary brands,” Mondelez chairman and CEO Irene Rosenfeld said in a statement Monday afternoon. “Following additional discussions, and taking into account recent shareholder developments at Hershey, we determined that there is no actionable path forward toward an agreement.”
Those recent developments include a resolution between Hershey and the Pennsylvania Attorney General’s office following a multi-month AG investigation of the Hershey Trust Company, the charitable trust that controls 81% of Hershey’s voting power. As a part of the resolution, five directors retired from the Trust Company; Hershey also agreed to give the PA attorney general’s office 30 days notice before appointing any new director.
A spokesperson for Hershey confirmed to FORBES that there were additional communications from Mondelez following its June offer, and also confirmed the company’s understanding that Mondelez is no longer pursuing a merger with Hershey. Beyond that, Hershey had no comment.
“While we are disappointed in this outcome, we remain disciplined in our approach to creating value, including through acquisitions, and confident that our advantaged platform positions us well for top-tier performance over the long term,” Rosenfeld added.
Though Wall Street analysts called the potential Hershey-Mondelez merger a good fit (“Most of Mondelez’s confectionery exposure is international; in the U.S., it’s mostly crackers and cookies. Over 85% of Hershey’s presence is in North America,” Edward Jones' Brittany Weissman said at the time), Mondelez shareholders — like Pershing Square Capital’s Bill Ackman — were less bullish about the prospect of a chocolate megamerger.
“The issuance of Mondelez stock at current prices to fund the acquisition of Hershey would likely be costly for Mondelez shareholders,” Ackman wrote in his most recent quarterly update. He also noted that shareholders “would find it unacceptable” for a company in the midst of a turnaround effort to expend time, effort and money acquiring a company like Hershey.
Following Mondelez’s announcement, shares of Mondelez popped more than 3% in Monday’s after-hours trading session, while Hershey shares cratered more than 10%. The stock is currently down 11.4%. Now that Mondelez has taken itself off the table, Hershey stock is almost back to where it was before the merger talks began:
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UPDATE: Mondelez says it won’t buy Hershey, and Hershey’s shares are crashing
Aug 29, 2016 | Business Insider
By Akyin Oyedele
Mondelez has abandoned talks to buy candy maker Hershey in a $23 billion deal.
In a statement on Monday, the food and beverage company said that it did not see a path toward an agreement "taking into account recent shareholder developments at Hershey."
About 80% of voting shares are controlled by the Hershey Trust Co.
The trust's general counsel resigned in July amid several qualms between the trust and the Pennsylvania attorney general, who would have approved the deal, according to The New York Times.
The attorney general accused the trust of misconduct for overpaying its directors. Several of them resigned this year.
"While we are disappointed in this outcome, we remain disciplined in our approach to creating value, including through acquisitions, and confident that our advantaged platform positions us well for top-tier performance over the long term," said Mondelez CEO Irene Rosenfeld.
Hershey shares fell by as much as 10% in after-hours trading. Mondelez gained 3%.
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Mondelez Abandons Hershey Talks Two Months After Bid Was Snubbed
Aug 29, 2016 | Bloomberg
By Nick Turner
Mondelez International Inc. is walking away from takeover discussions with Hershey Co. two months after its $23 billion bid was rejected by the chocolate maker.
Seeing “no actionable path forward toward an agreement,” Mondelez has ended talks over a merger, according to a statement on Monday. Hershey’s board had said on June 30 that it unanimously rejected Mondelez’s bid.
“Combining our two iconic American companies would create an industry leader with global scale in snacking and confectionery,” Chief Executive Officer Irene Rosenfeld said in Monday’s statement. “While we are disappointed in this outcome, we remain disciplined in our approach to creating value, including through acquisitions.”
The announcement sent Hershey shares down 10 percent to $100.51 late trading in New York. The stock had climbed 25 percent this year through Monday’s close, with most of that gain coming when news of Mondelez’s approach became public. Mondelez rose 0.1 percent to $43.10 after saying it had abandoned its pursuit.
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Aug 29, 2016 | Chicago Tribune
By Gregg Trotter
Mondelez International, maker of Oreo and Cadbury, officially halted its quest to form the world's largest confectionary maker, announcing Monday that it's ended conversations to acquire chocolate giant Hershey.
The announcement broke a prolonged silence on the possible deal after Deerfield-based Mondelez's offer of $26 billion was quickly rejected by Hershey in late June. From the get-go, the possible merger appeared saddled with obstacles, including Pennsylvania-basedHershey's unique governance structure that gives the Hershey School Trust board more than 80 percent of the company's voting power.
Despite such challenges, some analysts believed a deal could still get done and benefit both companies. But in a news release Monday, Mondelez CEO Irene Rosenfeld said there was "no actionable path forward toward an agreement."
"While we are disappointed in this outcome, we remain disciplined in our approach to creating value, including through acquisitions, and confident that our advantaged platform positions us well for top-tier performance over the long term," Rosenfeld said in the news release.
News of the takeover bid came as a surprise to many industry observers in June. Mondelez, which came into existence when Kraft Foods split into two publicly traded companies in 2012, has been under pressure from shareholders to cut costs and improve profit margins. Some analysts consider Mondelez more likely to be acquired, rather than taking over another company.
While Hershey is the leading chocolate company in the U.S., Mondelez has a more global presence — which is why some analysts said a merger of the two firms could benefit both. Cadbury chocolate represents the bulk of Mondelez's global candy business.
Shareholders will be further updated at the Barclays Global Consumer Staples Conference on Sept. 7, according to the Mondelez press release.
Mondelez stock was up more than 3 percent in after-hours trading Monday, while Hershey stock plummeted more than 11 percent.
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Hershey crashes 11% after chocolate merger talks end
Aug 29, 2016 | CNN Money
By Matt Egan
So much for that much-hyped chocolate marriage between Hershey and Cadbury.
Hershey's stock crashed 11% Monday evening after Cadbury owner Mondelez revealed it's no longer pursuing a deal to acquire the iconic American chocolate maker.
In June, Hershey rejected a $107-a-share takeover offer from Mondelez. The offer represented a 10% premium to Hershey's closing price at the time.
The two companies continued talking, but Mondelez said merger talks are now over. The snack giant said it determined there's "no actionable path forward" for a combination.
Mondelez cited "recent shareholder developments at Hershey," without elaborating.
The comments likely reflect reluctance from the Hershey Trust, the powerful shareholder that controls Hershey, to sell the candy giant. The Hershey Trust owns the vast majority of Hershey's votes and has been unwilling to sell in the past.
Hershey didn't immediately respond to a request for comment.
In an effort to "sweeten" the deal, Hershey reportedly promised to protect Hershey jobs, move its global chocolate headquarters to Hershey, Pa. and rename the combined company Hershey.
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Hershey Falls After Mondelez Drops Pursuit of Combination: Chart
Aug 29, 2016 | Bloomberg
By Sophie Caronello
View chart here: http://www.bloomberg.com/news/articles/2016-08-29/hershey-falls-after-mondelez-drops-pursuit-of-combination-chart
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Hershey and company behind Oreos won't join forces
Aug 29, 2016 | USA Today
By Charisse Jones
Mondelez International (MDLZ) has nixed a potential deal with The Hershey Company (HSY) that would have brought Oreo cookies and Reese's Peanut Butter Cups under one roof.
The East Hanover-NJ based company, whose brands include Nabisco and Trident gum, said in a statement Monday that while it viewed a tie up with Hershey as a chance to “create an industry leader with global scale . . . we determined that there is no actionable path forward toward an agreement.’’
On June 30, Hershey said it had received - and rejected - a cash and stock offer from Mondelez of $107 a share. But Hershey shares rose 15% to $111.87 following media reports about the bid.
After the announcement on Monday that there would be no merger, shares in Hershey ended the day up 0.71% to $111.67, but well below its 52-week high of $117.79. Mondelez was down .05% to $43.04 a share when markets closed, but up 3.62% to $44.60 in after hours trading.
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Mondelez abandons Hershey takeover bid
Aug 29, 2016 | Financial Times
By Lindsay Whipp
Mondelez International has abandoned its pursuit of chocolate-making rival Hershey,ending months of speculation over whether the producer of Oreos and Cadbury’s would increase its offer for the tightly-controlled company.
The decision sent Hershey’s shares down 11.2 per cent to $99.20 in after-hours trading in New York. The stock has increased 16 per cent since the offer was reported. Shares of Mondelez climbed 3.3 per cent to $44.45.
The Illinois-based snackmaker said on Monday that following further discussions and “taking into account recent shareholder developments at Hershey” it had concluded that there was no viable path to making a deal work. It said that it would instead focus on building out its existing business plan, which includes making its snacks more healthy.
“While we are disappointed in this outcome, we remain disciplined in our approach to creating value, including through acquisitions, and confident that [it] positions us well for top-tier performance over the long term,” said Irene Rosenfeld, chairman and chief executive of Mondelez.
Mondelez’s $23bn offer back in June to create the largest confectioner with 21 per cent of global sweets sales sent shockwaves across the industry given the difficulties associated with acquiring the company.
The Hershey Trust, which was in the midst of being investigated over aspects of its conduct, holds 80 per cent of the voting rights at Hershey, and any deal would have had to be approved by the Pennsylvania State Attorney’s office.
Last month, the Trust agreed to new rules laid out by the State Attorney’s office, which included a 10-year limit on board tenure. This means that three members will have to step down by the end of the year, with more following in 2017. Three others have already resigned this year.
Both the Republican and Democrat candidates for the State Attorney position in November had voiced concerns over any takeover of a company they see as an important contributor to the Pennsylvania economy.
This decision by Mondelez means that Hershey will have to rely on its own plan to revive its sales in China, which have fallen sharply amid a slowing economy and its attempt to integrate a local acquisition.
It last month cut is net sales growth estimate from 2.5 per cent to 2 per cent for 2016 in light of the challenges it faced in China and slower growth in the US, where it has most of its business.
Hershey said it had additional communications with Mondelez but it understood the company was no longer pursuing a merger. It declined to comment further.
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Mondelez Drops Hershey Takeover Bid
Aug 29, 2016 | Fortune
By John Kell
Snacking giant Mondelez has ended the company’s short-lived bid for chocolate giant Hershey, saying it had determined there was “no actionable path forward toward an agreement.”
Mondelez MDLZ 3.34% is backing away from the potential $23 billion takeover roughly two months after it had offered $107 per share for Hershey HSY -10.98% , half in stock and half in cash. The proposed tie-up would have created a major global snacking giant with $37 billion in annual sales and could have combined Mondelez’s Nabisco, Oreo and Cadbury brands with Hershey’s namesake chocolates, Reese’s, and Kisses candies.
However, Hershey had swiftly rejected the bid in late June. Observers said a hostile takeover effort would have likely been unsuccessful, as the Milton Hershey Trust controls 80% of shareholder votes at Hershey—and the trust was against the deal.
The news sent Hershey’s shares down a little over 10% in after-hours trading on Monday as investors digested the news, while the Mondelez stock barely budged.
Mondelez Chairman and CEO Irene Rosenfeld said that the proposal had reflected the company’s “conviction that combining our two iconic American companies would create an industry leader with global scale in snacking and confectionery and a strong portfolio of complementary brands.” But she said it became apparent that a deal wouldn’t get done.
“While we are disappointed in this outcome, we remain disciplined in our approach to creating value, including through acquisitions,” Rosenfeld said in a statement.
The future for Mondelez enters uncertain territory. Investors and Wall Street analysts have called for more consolidation among Big Food makers, which have faced tough growth prospects as many legacy brands have reported stalled sales growth in mature markets as consumer spending patterns change.
Analysts have viewed Mondelez itself as a possible takeover target before the bid for Hershey, which was viewed by some as a way for Rosenfeld to scale up the business to prevent a possible takeover. Her statement on Monday implies that Mondelez may still be on the hunt for deals—though the snacking giant didn’t indicate how the size and scope of that potential M&A activity.
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Hershey Isn't Sweet Enough for Mondelez Anyway
Aug 29, 2016 | Bloomberg
By Brooke Sutherland
That's the way the chocolate melts.
Mondelez, the $67 billion maker of Oreos and Cadbury eggs, said late Monday that it's giving up on takeover discussions with rival confectioner Hershey. That's not great news for investors in the would-be target, who are now facing a return to Hershey's flatlined stock price and slow-growth future. But Mondelez shareholders should be happy that in the end, it didn't get its treat.
The snackmaker had reportedly raised its offer for Hershey to $115 a share last week. That's roughly 7.5 percent more than Mondelez's initial cash-and-stock proposal, itself a pretty meager premium that was almost automatically rejected by Hershey. The chocolate company was said to have wanted a bid of at least $125 a share on the table before it would even begin discussions, according to the Wall Street Journal. If Mondelez had done that, and paid for half its offer in cash, a deal wouldn't add much to earnings before accounting for synergies, according to data compiled by Bloomberg. The math would just get shakier if the price had continued to go up.
Low Sugar
Mondelez shares initially popped on news of its bid for Hershey, but the stock has since come back down to earth.
Getting out now allows Mondelez to walk away with a sense of discipline. It also saves itself -- and its shareholders -- from what was bound to be a distracting and protracted effort to win approval from Hershey's controlling family trust, which has scuttled deals in the past. The trust may not have been in a position to sign off on a deal any time soon even if it wanted to. The entity is in the middle of a significant overhaul; many members will resign and the trust will adopt various governance changes as part of a settlement with the attorney general of Pennsylvania.
Even if Mondelez had been able to get Hershey to agree to a more digestible price, this may not have been the right deal for the company, anyway. Hershey, which sells Reese's peanut butter cups and York peppermint patties along with its eponymous chocolate bars, doesn't sell the kind of healthier, organic and natural foods that are the real growth areas in food these days. Sure, there are costs that could be cut and revenue synergies that could be wrung, but what then? Eventually the company would have to do another deal to keep sales churning higher.
3G Capital has shown that combining acquisitions with aggressive cost cutting can create substantial value. The investor acquired Heinz in 2013 and then merged it with Kraft last year. But Mondelez isn't 3G, at least not yet. It's got a ways to go to get its own house in order before it starts adding on new challenges. The company has adopted 3G's budgeting tactics and is targeting an adjusted operating margin of 17 percent to 18 percent by 2018, up from about 14 percent in 2015. That's nice -- but analysts' 2016 projections for KraftHeinz suggest an (unadjusted) operating margin of more than 25 percent.
Even KraftHeinz shares may be running out of upside, if you ask Susquehanna analyst Pablo Zuanic. He thinks another acquisition would make the company's stock a much more appealing investment. How about a Mondelez-sized snack? -
Mondelez abandons pursuit of U.S. chocolate maker Hershey
Aug 29, 2016 | Reuters
By Greg Roumeliiotis
n" style="transform: translate3d(0px, 0px, 0px);">Mondelez International Inc (MDLZ.O), the maker of Oreo cookies and Cadbury chocolates, said it was no longer pursuing the acquisition of Hershey Co (HSY.N), two months after the U.S. chocolate company turned down its $23 billion cash-and-stock bid.
The abandoned deal, which would have created the world's largest confectioner, underscores the grip that a charitable trust has on the maker of Hershey's Kisses and Reese's Peanut Butter Cups. The trust which controls Hershey was set up by the company's founder over a century ago to fund and run a school for underprivileged children.
Hershey rejected a $107 per share acquisition offer from Mondelez at the end of June. An unrelated row between the trust and the Pennsylvania Attorney General's office ensued over the trust's governance, which resulted in a reform agreement being announced at the end of July.
The agreement calls for the trust's board to be expanded from 10 members to 13, and for five members to resign in order for 10-year terms to be enforced. One trustee resigned last month, leaving a total of nine openings.
Mondelez's Chief Executive Officer Irene Rosenfeld approached Hershey Chief Executive John Bilbrey again last week, and indicated that Mondelez would be willing to offer up to $115 per share for Hershey, according to a source familiar with the discussions who asked not to be identified because they were confidential.
Hershey responded that the trust would not be able to consider an offer until it is reconstituted next year, the source said. Even then, Hershey would not be willing to enter into deal negotiations for an offer of less than $125 per share, the source added.
Hershey did not respond to a request for comment. Its shares fell 11.4 percent in after hours trading in New York on Monday to $99.00.
"Following additional discussions, and taking into account recent shareholder developments at Hershey, we determined that there is no actionable path forward toward an agreement," Rosenfeld said in a statement.
The Hershey trust holds 81 percent of the company's voting stock, and so a sale is not possible without its approval. About two-thirds of its $12 billion in assets are in Hershey stock.
Mondelez's offer was half in cash and half in stock, sources have said. This means new board members of the trust, which must approve any sale of Hershey, could use such a transaction to substantially reduce its exposure in Hershey by partially cashing out on its stake.
"While we are disappointed in this outcome, we remain disciplined in our approach to creating value, including through acquisitions," Rosenfeld said on Monday.
ATTORNEY GENERAL UP FOR ELECTION
Even if the trust does decide to explore a sale of Hershey, it can still be overruled. In 2002, the trust put Hershey up for sale, citing a need to diversify its holdings.
At the last minute, it pulled the plug on a sale to chewing gum maker Wm. Wrigley Jr. Co for $12.5 billion, after the attorney general's office successfully petitioned a court to block the offer amid local community protests.
Pennsylvania's attorney general Kathleen Kane stepped down earlier this month after she was convicted of leaking secret criminal files to discredit a political adversary, and then lying about it. She was succeeded by her deputy Bruce Castor, and the post is up for election in November.
Pennsylvania state senator John Rafferty, the Republican candidate for attorney general, has said he does not think diversification for a charitable trust is always necessary, and has expressed "serious reservations" about a potential sale to Mondelez.
Democrat candidate Josh Shapiro has said he will "vigorously protect Hershey's continued success in Pennsylvania" and protect it from "multi-national corporations and Wall Street investors willing to destroy Pennsylvania jobs for their own profit."
Hershey's growth has slowed in the last two years as competitors such as Mars Inc expand their offerings, and premium players such as Chocoladefabriken Lindt & Spruengli AG (LISN.S) entered the U.S. market.
Mondelez, which has more of a global footprint than Hershey, is the second-largest confectionary company in the world, while Hershey ranks number five.
Their merger would put them in the top place at 18 percent of the market, according to market research firm Euromonitor International Ltd. The combined company would leapfrog Mars, which has 13.3 percent of the global market.
Last year, William Ackman revealed his activist hedge fund Pershing Square had built a stake worth about $5.5 billion in Mondelez, in what was seen as an attempt to push the company to boost earnings or sell itself.
Ackman had joined fellow activist Nelson Peltz as an investor in Mondelez. In a letter to his investors earlier this month, Ackman wrote that Mondelez shares are currently undervalued, and that the issuance of Mondelez stock to fund the acquisition of Hershey would likely be costly for Mondelez shareholders.
(Reporting by Greg Roumeliotis in New York; Additional reporting by Svea Herbst-Bayliss in Boston and Gayathree Ganesan and Sruthi Shankar in Bengaluru; Editing by Kirti Pandey, Tom Brown and Bernard Orr)
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Hershey’s Failed Deal Reinforces Image as a Company Not for Sale
Aug 29, 2016 | Bloomberg
By Craig Giammona and Ed Hammond
The latest failed acquisition of Hershey Co. has renewed the chocolate maker’s reputation as a company that can’t be bought.
After Mondelez International Inc. abandoned merger discussions on Monday, Hershey shares plunged as much as 12 percent and left investors with a familiar taste. For years, Hershey has been the subject of takeover speculation. And for years, deal talks have sputtered and died.
The most recent rejection came after Mondelez proposed sweetening its offer to $115 a share, according to a person familiar with the situation. That was 18 percent higher than the stock’s price before deal talks were disclosed in June, but Hershey wanted to start the discussions at $125, said the person, who asked not to be identified because the negotiations were private. Turmoil at the Hershey Trust, the nonprofit organization that controls the company, also hampered merger talks.
Hershey, already struggling with shifting consumer tastes and an ill-fated expansion into China, may now have also scared away future bidders.
“This will have a dampening effect on potential offers for Hershey,” Bloomberg Intelligence analyst Ken Shea said. “People who may have been interested will look at what just happened and be more skeptical that they can get a deal done.”No Path Forward
Mondelez’s initial $107-a-share offer in cash and stock would have valued Hershey at about $23 billion. Hershey’s board said on June 30 that it unanimously rejected that bid. Talks continued, but Mondelez said on Monday that it saw “no actionable path forward toward an agreement.”
The announcement sent Hershey shares down as low as $98.06 in late trading in New York, erasing much of their recent rally. The stock had climbed 25 percent this year through Monday’s close, with most of that gain coming when news of Mondelez’s approach became public.
A Gadfly analysis of why Mondelez is better off without Hershey
Ending the pursuit of Hershey brought some relief to Mondelez investors, who may have been concerned about a takeover battle. Shares of the Deerfield, Illinois-based company rose as much as 3.9 percent to $44.70 after the announcement.
Mondelez Chief Executive Officer Irene Rosenfeld, who saw the deal as a chance to create the world’s largest candy company, lamented that the two sides couldn’t reach an agreement.
“Combining our two iconic American companies would create an industry leader with global scale in snacking and confectionery,” she said in Monday’s statement. “While we are disappointed in this outcome, we remain disciplined in our approach to creating value, including through acquisitions.”Good Fit?
The merger would have given Mondelez a bigger share of the domestic market -- a weak spot for the maker of Oreos and Triscuits. Hershey generated almost 90 percent of its revenue in North America last year, with the majority of that coming from selling chocolate in the U.S. Mondelez, meanwhile, has suffered from currency fluctuations and slowing overseas economies.
“The strategic fit with Mondelez was pretty compelling,” Shea said. “Not a lot of other companies can do that kind of combination.”
Hershey owns the Cadbury license in the U.S., while Mondelez sells the candy in the rest of the world. Unifying that brand was considered part of the rationale for the merger.
But when Hershey snubbed the $107-a-share bid in June, it said that the offer “provided no basis for further discussion between Mondelez and the company.” Though Mondelez was willing to raise the price by $8 a share, Hershey demanded at least $125, said the person with knowledge of the matter. The Wall Street Journalpreviously reported on the negotiations.Trust Upheaval
Then there’s the Hershey Trust. The $12 billion charity organization is in flux, with many of its directors headed for the exits. Hershey didn’t want to even consider a transaction with Mondelez until the charity’s board is reconstituted next year, another person familiar with the situation said.
The trust, which runs Hershey Entertainment & Resorts Co., controls about 81 percent of the chocolate company’s voting shares. It also operates the Milton Hershey School, which educates underprivileged children. After facing accusations of lavish spending in recent years, the charity reached a deal in July with the Pennsylvania attorney general to reform its management practices. That agreement called for three board members to retire by the end of the year, with two more stepping down by end of 2017.Earlier Attempts
The trust has scuttled takeovers in the past. Nestle and Wm. Wrigley Jr. Co. both made offers to buy the company in 2002 before being rebuffed. The trust also has stood between Hershey and a deal with Cadbury, which was ultimately acquired by Kraft Foods.
Another wrinkle: The Pennsylvania attorney general has the right to review a deal to acquire Hershey. That’s because the trust is legally obligated to continue financing the Milton Hershey School. Because the organization is supported by profits from the chocolate company, the state can try to stop a sale if it determines that school funding is threatened.
To entice Hershey and its stakeholders, Mondelez offered some unusual concessions with its bid. The suitor pledged to keep the combined company in Hershey, Pennsylvania, and retain the Hershey name, according to the Journal. With the trust’s recent upheaval, Mondelez may have felt like it picked the right time to pounce, Shea said.
“I think they thought there was an opening,” he said. There wasn’t.
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Mondelez ends effort to acquire Hershey Co.
Aug 29, 2016 | Lancaster Online
By Tim Mekel
Mondelez International said Monday it has ended efforts to buy The Hershey Co.
Mondelez’s interest in Hershey was disclosed by The Wall Street Journal on June 30. That same day, Hershey announced it had rejected a $23 billion offer from Mondelez.
“Following additional discussions, and taking into account recent shareholder developments at Hershey, we determined that there is no actionable path forward toward an agreement,” said Mondelez Chairman and CEO Irene Rosenfeld in a prepared statement.
In her statement, Rosenfeld reiterated the appeal of Hershey to Mondelez.
"Our proposal to acquire Hershey reflected our conviction that combining our two iconic American companies would create an industry leader with global scale in snacking and confectionery and a strong portfolio of complementary brands,” she said.
Mondelez, based in Deerfield, Illinois, is the nation’s largest snack maker. Its product line includes Oreo and Chips Ahoy cookies, Cadbury chocolate bars, Trident gum and Halls candy.
Hershey is the nation’s largest candy maker. Its products include Hershey Kisses, Twizzler licorice, Milk Duds, Reese’s Pieces, PayDay candy bars, Jolly Rancher candy and Breath Saver breath mints.
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Mondelez withdraws bid for Hershey; Hershey's stock crashes 11%
Aug 29, 2016 | WGAL News 8
HERSHEY, Pa. —Hershey's stock crashed 11% Monday evening after Cadbury owner Mondelez revealed it's no longer pursuing a deal to acquire the iconic American chocolate maker.
In June, Hershey rejected a $107-a-share takeover offer from Mondelez. The offer represented a 10% premium to Hershey's closing price at the time.
The two companies continued talking, but Mondelez said merger talks are now over. The snack giant said it determined there's "no actionable path forward" for a combination.
Mondelez cited "recent shareholder developments at Hershey," without elaborating.
The comments likely reflect reluctance from the Hershey Trust, the powerful shareholder that controls Hershey, to sell the candy giant. The Hershey Trust owns the vast majority of Hershey's votes and has been unwilling to sell in the past.
Hershey didn't immediately respond to a request for comment.
In an effort to "sweeten" the deal, Hershey reportedly promised to protect Hershey jobs, move its global chocolate headquarters to Hershey, Pa. and rename the combined company Hershey.
Read more below:
Mondelez International, Inc. (NASDAQ:MDLZ) today announced it has ended discussions with The Hershey Company regarding a possible combination of the two companies.
"As the world's leading snacking company, we remain focused on successfully executing our strategy to deliver both sustainable top-line growth and significant margin expansion and are well-positioned to continue to deliver value to our shareholders," said Chairman and CEO Irene Rosenfeld. "Our proposal to acquire Hershey reflected our conviction that combining our two iconic American companies would create an industry leader with global scale in snacking and confectionery and a strong portfolio of complementary brands. Following additional discussions, and taking into account recent shareholder developments at Hershey, we determined that there is no actionable path forward toward an agreement. While we are disappointed in this outcome, we remain disciplined in our approach to creating value, including through acquisitions, and confident that our advantaged platform positions us well for top-tier performance over the long term."
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Mondelez drops talks on possible $22.3B takeover of Hershey
Aug 29, 2016 | Philadelphia Inquirer
By Bob Fernandez
Global snacks giant Mondelez International Inc. ended negotiations on a potential $22.3 billion takeover of Pennsylvania chocolate-maker Hershey Co., saying there was "no actionable path forward."
Mondelez, based in the Chicago area and the marketer of Oreo cookies and Nabisco products, released a statement on Monday, after U.S. stock markets closed at 4 p.m.
Shares of Hershey - which had been bolstered by takeover speculation over the last month - fell 11 percent in extended trading to about $99 a share, according to published reports and a Wall Street analyst.
In June, Mondelez had offered $107 a share for Hershey and reportedly had upped the bid recently to $115 a share. But it was not enough.
Hershey spokeswoman Jennifer Sniderman said there had been additional discussions with Mondelez. But she added, "I can confirm our understanding that Mondelez is no longer pursuing a combination with Hershey. Beyond this, we are providing no further comments."
Acquisition of Hershey by Mondelez had been a long shot. The effort coincided with an investigation by the Pennsylvania Attorney General's Office and continued turmoil at the $12.5 billion Hershey charitable trust, which controls the chocolate company for the benefit of poor children.
Stock dividends from the nation's largest chocolate company help pay for expenses at the 2,000-student Milton Hershey School. Student expenses are $118,000 a year per child, according to the charity's tax return. Enrollment is restricted to impoverished youngsters.
In late July, the state Office of Attorney General settled the investigation with an agreement that will force five members off the charity's board by late 2017.
In addition, as part of the agreement, the charity is expected to appoint nine new board members, bringing the board to 13 members.
With the combination of the forced resignations and expected new members, the charity's board will have a new majority by 2018.
"Following additional discussions, and taking into account recent shareholder developments at Hershey, we determined that there is no actionable path forward toward an agreement," Mondelez chief executive Irene Rosenfeld said in a statement Monday.
A Mondelez spokesman said the company would not comment beyond the statement.
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Aug 29, 2016 | Central Penn Business Journal
By Roger DuPuis
Hershey-coated Oreos? Forget about it.
Illinois-based Mondelez International, maker of the popular chocolate cookies and a wide range of other snack foods, today announced that it is no longer pursuing a combination with The Hershey Co.
"Our proposal to acquire Hershey reflected our conviction that combining our two iconic American companies would create an industry leader with global scale in snacking and confectionery and a strong portfolio of complementary brands," Mondelez Chairman and CEO Irene Rosenfeld said.
Hershey's board on June 30 rejected a $23 billion purchase proposal from Mondelez, and the Dauphin County candy company has never said anything further about the pitch.
Mondelez also has been tight-lipped, until today.
"Following additional discussions, and taking into account recent shareholder developments at Hershey, we determined that there is no actionable path forward toward an agreement," Rosenfeld added.
Last month, Hershey's most recent earnings statement revealed that the company had recorded its first quarterly sales increase in a year, and Hershey declared quarterly dividends.
Mondelez, meanwhile, in July recorded its 11th straight quarterly decline, CNBC reported, and analysts suggested Mondelez itself could be an acquisition target.
The company did make one Hershey-related acquisition, however. Mondelez this month announced that ithad reached an agreement to buy the license to manufacture and sell Cadbury-branded biscuits internationally, including in North America. Hershey — which backed away from an effort to buy UK-based Cadbury six years ago — has held the rights to Cadbury’s U.S. chocolate brands since 1988. The biscuits, however, have been produced under a separate license.
But hopes for any merger between Mondelez and Hershey seemed to die this afternoon with Rosenfeld's statement.
"While we are disappointed in this outcome, we remain disciplined in our approach to creating value, including through acquisitions, and confident that our advantaged platform positions us well for top-tier performance over the long term," she said.
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Hershey -10% AH after Mondelez ends pursuit
Aug 29, 2016 | Seeking Alpha
Mondelez International (NASDAQ:MDLZ) announces it has ended discussions with Hershey (NYSE:HSY) regarding a potential merger after factoring in recent shareholder developments at the candy company.
“We remain focused on successfully executing our strategy to deliver both sustainable top-line growth and significant margin expansion and are well-positioned to continue to deliver value to our shareholders,” says CEO Irene Rosenfeld.
Shares of Hershey are down 9.8% AH. MDLZ is inactive.
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Hershey shares dive after Mondelez calls off deal talks
Aug 29, 2016 | Market Watch
By Jeremy C. Owens
Mondelez International Inc. MDLZ, +3.28% announced Monday that it is no longer negotiating with The Hershey Co. HSY, -11.27% on a potential acquisition, sending Hershey shares plunging. Hershey shares soared to record highs in June after The Wall Street Journal reported that Mondelez offered $107 a share for the candy company. Hershey rejected that $23 billion bid, and Mondelez said further talks were unsuccessful. "Following additional discussions, and taking into account recent shareholder developments at Hershey, we determined that there is no actionable path forward toward an agreement," Mondelez Chief Executive Irene Rosenfeld said in a news release Monday afternoon. Hershey shares plunged more than 10% in late trading, falling below $100 a share after closing at $111.67, while Mondelez shares added about 1%.
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UPDATE: Hershey (HSY) Stock Stumbles in After-Hours Trading, Mondelez Not Pursuing Deal
Aug 29, 2016 | The Street
By Kaya Yurieff
NEW YORK (TheStreet) -- Shares of Hershey (HSY) were dropping 11.45% to $98.88 in after-hours trading on Monday after Mondelez (MDLZ) said it is no longer pursuing a combination with the company.
"As the world's leading snacking company, we remain focused on successfully executing our strategy to deliver both sustainable top-line growth and significant margin expansion and are well-positioned to continue to deliver value to our shareholders," Mondelez CEO Irene Rosenfeld said in a statement.
After additional discussions and taking into account recent shareholder developments at Hershey, Mondelez determined that there is "no actionable path forward" toward an agreement.
In July, Hershey rejected a $23 billion takeover offer from Mondelez.
Mondelez had upped its bid for the company to $115 per share last week before abandoning a possible deal today, a source told the Wall Street Journal. Hershey said price talks would need to start at $125 per share, the source added.
Additionally, Hershey said the deal could not occur before the trust board is reconstituted, which likely won't happen until next year, the Journal noted, citing a source.
"While we are disappointed in this outcome, we remain disciplined in our approach to creating value, including through acquisitions, and confident that our advantaged platform positions us well for top-tier performance over the long term," Rosenfeld added.
Shares of Mondelez were advancing in after-hours trading on Monday.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of B on Hershey stock.
The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, notable return on equity, expanding profit margins and solid stock price performance.
The team believes its strengths outweigh the fact that the company has had generally high debt management risk by most measures that were evaluated.
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Hershey Shares Plunge Over 11% after Mondelez Says It Won’t Pursue Takeover
Aug 29, 2016 | EFT Daily News
Candy-making giant Hershey Co (NYSE:HSY) shares are plunging in after-hours trading today, after fellow food maker Mondelez said it was no longer in talks to acquire the company.
News of the potential merger broke a couple months ago. On June 30, Hershey rejected a $107 per-share takeover bid from Mondelez, when its stock was trading around $97.
Investors were expecting a bigger offer, but it never materialized. Hershey hit a high around $117, but all of those gains will likely be wiped out when the stock opens for trading tomorrow.
Mondelez said via statement:
“As the world’s leading snacking company, we remain focused on successfully executing our strategy to deliver both sustainable top-line growth and significant margin expansion and are well-positioned to continue to deliver value to our shareholders,” said Chairman and CEO Irene Rosenfeld. “Our proposal to acquire Hershey reflected our conviction that combining our two iconic American companies would create an industry leader with global scale in snacking and confectionery and a strong portfolio of complementary brands. Following additional discussions, and taking into account recent shareholder developments at Hershey, we determined that there is no actionable path forward toward an agreement. While we are disappointed in this outcome, we remain disciplined in our approach to creating value, including through acquisitions, and confident that our advantaged platform positions us well for top-tier performance over the long term.”
Hershey shares fell $12.77 (-11.44%) to $98.90 in after-hours trading. Prior to today’s news, HSY had gained 25% year-to-date.
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Hershey Plunges After Mondelez Pulls Offer To Buy Company
Aug 29, 2016 | Zero Hedge
By Tyler Durden
Three months after Mondelez shocked the world with the latest proposed mega-merger, when it offered $23 billion to acquire Pennsylvania's iconic Hershey, in a bid to make the world's biggest candy maker combining the candy industry’s second- and fifth-largest players by revenue, moments ago, the snack giant, which makes Oreo cookies and Cadbury chocolate bares, announced it was no longer pursuing the combination.
From the just filed press release:
Mondel?z International, Inc. today announced it has ended discussions with The Hershey Company regarding a possible combination of the two companies.
"As the world's leading snacking company, we remain focused on successfully executing our strategy to deliver both sustainable top-line growth and significant margin expansion and are well-positioned to continue to deliver value to our shareholders," said Chairman and CEO Irene Rosenfeld. "Our proposal to acquire Hershey reflected our conviction that combining our two iconic American companies would create an industry leader with global scale in snacking and confectionery and a strong portfolio of complementary brands. Following additional discussions, and taking into account recent shareholder developments at Hershey, we determined that there is no actionable path forward toward an agreement. While we are disappointed in this outcome, we remain disciplined in our approach to creating value, including through acquisitions, and confident that our advantaged platform positions us well for top-tier performance over the long term."
As the WSJ, which first broke the news of the proposed merger, wrote at the time, Mondelez, which had engaged in aggressive mergers in the recent past, was certain to face various obstacles: among other, it 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. 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.
The Hershey Trust, established by the 122-year-old company’s late founder, Milton Hershey, is the biggest potential roadblock. The trust’s primary beneficiary is a school for underprivileged children in Hershey’s hometown.
Mr. Hershey was considered as much a philanthropist as an entrepreneur. As he built the chocolate company, he raised a town as well, erecting a bank, a department store, churches, golf courses, a zoo and a trolley system. Then, in 1909, he and his wife, Catherine, founded a school for orphan boys, now called the Milton Hershey School. Today the lavishly appointed private school serves disadvantaged children of both sexes.
The Pennsylvania attorney general was also investigating the trust’s board for alleged overpayment of directors and conflicts of interest, and the trust has said it is working with the attorney general’s office on the probe. This year, several of the directors have resigned, which could change the board’s attitude toward a possible sale. Indeed, a person familiar with the matter said the trust, which now includes some directors with Wall Street backgrounds, may now be more open to a deal.
Among the other potential hurdles for Mondelez: its bid could flush out other parties who might covet Hershey. Nestlé SA is one possibility. The Swiss food giant, which has a big chocolate business, licenses its KitKat brand to Hershey in the U.S. But Nestlé could face bigger antitrust issues in the U.S. if it were to try to buy Hershey. Nestle has the right to reclaim control of KitKat at no cost if someone else buys Hershey. That could reduce Hershey’s value to Mondelez by $3 billion, according to a person familiar with the matter.
It also wasn't clear how any any deal would be received in the town of Hershey, where streetlights along Chocolate Avenue are topped with giant Hershey kisses.
Then there was the purchase multiple, which valued the company at roughly a 30x P/E multiple.
Or perhaps it was simply "market conditions" - after all, the S&P failed to close at a new all time high.
Whatever the reason for the termination, this particular merger has now been pulled, much to the chagrin of merger arbs who are long the stock, as HSY was down12% after the news...
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Mondelez Drops Plans to Acquire Hershey
Aug 29, 2016 | Progressive Grocer
Mondelēz International Inc. has ended discussions with The Hershey Co. regarding a possible combination of the two companies.
"As the world's leading snacking company, we remain focused on successfully executing our strategy to deliver both sustainable top-line growth and significant margin expansion and are well-positioned to continue to deliver value to our shareholders," said Chairman and CEO Irene Rosenfeld. "Our proposal to acquire Hershey reflected our conviction that combining our two iconic American companies would create an industry leader with global scale in snacking and confectionery and a strong portfolio of complementary brands. Following additional discussions and taking into account recent shareholder developments at Hershey," Rosenfeld continued, "we determined that there is no actionable path forward toward an agreement. While we are disappointed in this outcome, we remain disciplined in our approach to creating value, including through acquisitions, and confident that our advantaged platform positions us well for top-tier performance over the long term."
Executives from Mondelēz International, including EVP/CFO Brian Gladden, EVP, Integrated Supply Chain Daniel Myers and EVP/Chief Growth Officer Tim Cofer, will present at the Barclays Global Consumer Staples Conference on Wednesday, Sept. 7. A live audio webcast of the presentation will be available here while an archive of the webcast will be available on the company's website. Mondelēz will also be live tweeting the event at www.twitter.com/MDLZ.
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Hershey (HSY) May Still Be A Good Buy Despite Loss of Mondelez Bid, Says CNBC's Guy Adami
Aug 29, 2016 | The Street
By Natalie Walters
NEW YORK (TheStreet) -- Investors shouldn't rush to sell off shares of Hershey (HSY) , even though Mondelez (MDLZ) announced it's no longer pursuing a combination with the company, CNBC "Fast Money" trader Guy Adami said on "Closing Bell" Monday.
Mondelez is disappointed that the attempted takeover fell through, but it had "determined that there is no actionable path forward toward an agreement with Hershey," according to the announcement.
"It seem as if the Hershey Trust has once again fended off a suitor. It just became too thorny to try to navigate that process. They have a lock on that board," noted CNBC's Michael Santoli.
However, when news of a potential acquisition by Mondelez first broke in July, shares of Hershey took off, noted Adami. While this particular suitor fell through, Hershey will most likely have other suitors come forward, giving investors a chance to buy up the stock at a lower price now and wait for it to rally on the next potential acquisition, he explained.
"I think other suitors might come forth, and if you can buy this at $98 again and sort of round-trip where this stock took off from, I think you'd take an absolute shot right there," Adami said.
Shares of Hershey were lower by 11.67% to $98.60 in after-hours trading on Monday.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings team rates Hershey as a Buy with a ratings score of B. This is driven by some important positives, which the team believes should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks the team covers.
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Here's Why Hershey (HSY) Stock Plummeted Today
Aug 29, 2016 | Zacks.com
By Ryan McQueeney
Shares of chocolate maker The Hershey Co. (HSY - Analyst Report) abruptly dropped over 11% in after-hours trading Monday after Mondelez International (MDLZ - Analyst Report) announced that it is no longer negotiating a possible takeover of the candy giant.
Hershey shares soared to all-time highs back in June after Mondelez, the self-proclaimed world leader in “snacking,” offered to take over the company in a cash and stock deal worth nearly $23 billion. Mondelez’s initial offer was unanimously rejected by Hershey’s board of directors.
“Our proposal to acquire Hershey reflected our conviction that combining our two iconic American companies would create an industry leader with global scale in snacking and confectionery and a strong portfolio of complementary brands,” said Mondelez CEO Irene Rosenfeld.
“Following additional discussions, and taking into account recent shareholder developments at Hershey, we determined that there is no actionable path forward toward an agreement. While we are disappointed in this outcome, we remain disciplined in our approach to creating value, including through acquisitions, and confident that our advantaged platform positions us well for top-tier performance over the long term,” the chief executive added.
Deals involving Hershey are subject to approval by the Hershey Trust, which owns about 11% of the company’s common stock and 81% of its voting rights. A merger between Mondelez and Hershey would have created the largest confectioner in the world, jumping the current leader, Mars Inc., for the top spot.
Although Mondelez said that it would project the jobs of Hershey’s employees, move its chocolate headquarters to Hershey, Pennsylvania and rename the company Hershey’s, apparently the deal just wasn’t sweet enough for right now.
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Hershey Co. (HSY) Is Tumbling After Mondelez Talks Fall Apart
Aug 29, 2016 | RTT News
Mondelez International Inc. (MDLZ) announced after the bell Monday that it has put an end to discussions with Hershey Co. (HSY) regarding a possible combination of the two companies. Chairman and CEO Irene Rosenfeld stated "we determined that there is no actionable path forward toward an agreement."
Hershey climbed during the first half hour of trade Monday, but settled into a range for the remainder of the session. The stock closed up by 0.79 at $111.67. Hershey is now down 12.77 on 913K shares after the bell.
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Mondelez drops bid for Hershey
Aug 29, 2016 | Crain's Chicago Business
By Peter Frost
Mondelez International said today it is ending flirtation with chocolate giant Hershey, citing “recent shareholder developments” as its reason for walking away.
The Deerfield-based snacks company made an approach in June to take over Hershey for about $23.2 billion, a 10 percent premium to the company's stock the day the news was announced. The Hershey board unanimously dismissed the bid.
In a statement released today after market close, Mondelez CEO Irene Rosenfeld said the company determined "there is no actionable path forward toward an agreement" and said she's "disappointed in this outcome." Mondelez, she said, remains "disciplined in our approach to creating value, including through acquisitions, and confident that our advantaged platform positions us well for top-tier performance over the long term."
The announcement surprised investors who expected Rosenfeld to continue her pursuit of the chocolate maker, which controls more than 45 percent of the U.S. chocolate market. Shares of Hershey plummeted as much as 13 percent after hours, near levels it traded prior to Mondelez's approach was made public. Mondelez stock, meanwhile, jumped almost 3 percent in after-hours trading.
Pennsylvania-based Hershey did not immediately respond to a request for comment.
The proposed tie-up made sense strategically for Mondelez, which makes Oreo cookies, Nabisco crackers and Trident gum. Because most of its chocolate brands are sold outside the country, Hershey would have offered up a significant portion of the U.S. market.
Hershey's unusual ownership structure has been an impediment to takeovers in the past. The charitable Hershey Trust Foundation, formed in 1905, holds 8.2 percent of the company's common stock but has a majority of its voting power, giving it the ability to block any unwanted buyer. The trust, which counts on Hershey's dividends to fund its operations, teamed up with the Pennsylvania attorney general to effectively block a similar deal in 2002 when Hershey tried to sell itself to Chicago-based Wrigley.
The combination of the world's No. 2 and No. 5 confectioners would surpass Mars as the world's biggest candy titan, making it big enough to effectively shield itself from being acquired.
Now it appears Mondelez will begin its hunt for other brands anew. The deal-making Rosenfeld earlier this month announced it would tack on a license from Burton's Biscuit that would enable it to make and sell Cadbury-branded biscuits worldwide, including in the U.S., U.K., France and Saudi Arabia, subject to regulatory approval. Terms were not disclosed.
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Mondelez (MDLZ) Stock Up in After-Hours Trading, No Longer Seeking Hershey Deal
Aug 29, 2016 | The Street
By Rachel Aldrich
hares of Mondelez (MDLZ) were gaining in after-hours trading on Monday after the company said it was no longer pursuing a deal withHershey (HSY).
The Deerfield, IL-based snack manufacturer made a $23 billion bid for the company early in July, which Hershey later rejected.
"Our proposal to acquire Hershey reflected our conviction that combining our two iconic American companies would create an industry leader with global scale in snacking and confectionery and a strong portfolio of complementary brands," CEO Irene Rosenfeld said in a statement.
Following further discussion and recent shareholder developments at Hershey, Mondelez said it would no look to combine the two companies.
Following further discussion and recent shareholder developments at Hershey, Mondelez said it would no look to combine the two companies.
"While we are disappointed in this outcome, we remain disciplined in our approach to creating value, including through acquisitions, and confident that our advantaged platform positions us well for top-tier performance in the long term," Rosenfeld added.
Shares of Hershey were sliding 11.41% to $98.93 in after-hours trading on Monday.
Separately, TheStreet Ratings objectively rated Mondelez stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a "buy" with a ratings score of B.
The company's strengths can be seen in multiple areas, such as its notable return on equity, expanding profit margins, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth and increase in stock price during the past year. We feel its strengths outweigh the fact that the company shows weak operating cash flow.
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Hershey And 6 Others Stocks Moving In Monday's After-Hours Session
Aug 29, 2016 | Benzinga
By Javier Hasse
U.S. stocks edged higher on Monday trading, helped by strong performance among financial companies.
Hershey Co HSY 0.71% tumbled more than 11.4 percent after the market closed, after Mondelez International Inc MDLZ 0.05% said it was no longer in talks to acquire it as they had found no actionable path to an agreement. Shares of Mondelez traded up more than 3.6 percent in Monday’s after-hours session.
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Mondelez Abandons Hershey Takeover Bid
Aug 29, 2016 | Vending Times
By Nick Montano
Snack giant Mondelēz International Inc. today announced that it has ended discussions with Hershey Co. regarding a possible combination of the two companies.
Mondelez is stepping back from the potential $23 billion takeover about two months after it had offered $107 per share for Hershey, half in stock and half in cash. The proposed combination would have created a global snacking titan with $37 billion in annual sales. It would have combined Mondelez’s Nabisco, Oreo and Cadbury brands with Hershey’s namesake chocolates, Reese’s and Kisses.
"As the world's leading snacking company, we remain focused on successfully executing our strategy to deliver both sustainable top-line growth and significant margin expansion and are well-positioned to continue to deliver value to our shareholders," said Mondelez chairman and chief executive Irene Rosenfeld. "Our proposal to acquire Hershey reflected our conviction that combining our two iconic American companies would create an industry leader with global scale in snacking and confectionery and a strong portfolio of complementary brands."
However, following additional discussions, and taking into account recent shareholder developments at Hershey, Mondelez determined that there was no actionable path forward toward an agreement, Rosenfeld said.
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Mondelez drops merger plans with Hershey
Aug 29, 2016 | AFP
US industrial snacks giant Mondelez International said Monday it had dropped plans to merge with chocolatier The Hershey Company.
The announcement came nearly two months after Hershey, the maker of Reese's Peanut Butter Cups and Hershey's Kisses, rejected a $23 billion takeover offer from Mondelez.
"Following additional discussions, and taking into account recent shareholder developments at Hershey, we determined that there is no actionable path forward toward an agreement," Mondelez said in a statement, adding that executives were "disappointed."
The merged company would have overtaken Mars as the world's largest candy purveyor.
In June, the Hershey board of directors said it had "carefully reviewed" a bid of $107 per share for the company and found it offered "no basis for further discussion."
Hershey had in 2002 also rejected a $12.5 billion takeover offer from Wrigley, which is now a unit of Mars.
Founded in 1984 by Milton Hershey, the Hershey Company is an iconic American brand controlled by a family trust which overseas charitable funds.
The Deerfield, Illinois-based Mondelez, formerly known as Kraft Foods, also produces popular lines of sweets, including Oreo and Chips Ahoy! cookies.
After closing regular trade up 0.7 percent prior to the announcement, Hershey shares tumbled 11.4 percent in after-hours trade.
Mondelez shares, which closed flat, added 3.9 percent in late trading.
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Aug 29, 2016 | City A.M.
By Mark Sands
Mondelez, which re-branded from Kraft Foods in 2012, revealed it had dropped the plans in a statement tonight.
The decision comes after the Mondelez had a $23bn (£17.6bn) takeover offer for Hershey rejected in June.
“Following additional discussions, and taking into account recent shareholder developments at Hershey, we determined that there is no actionable path forward toward an agreement,” Mondelez chief executive Irene Rosenfeld said.
“While we are disappointed in this outcome, we remain disciplined in our approach to creating value, including through acquisitions, and confident that our advantaged platform positions us well for top-tier performance over the long term."
The revelation has seen Hershey's shares respond by tumbling 11 per cent to $98.93, while Mondelez's shares climbed slightly, up 3.6 per cent to $44.60.
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Snack-maker Mondelez drops bid to merge with Hershey's
Aug 29, 2016 | UPI
By Doug G. Ware
DEERFIELD, Ill., Aug. 29 (UPI) -- After months of negotiations, Mondelez International, one of the world's leading snack companies, announced Monday it is no longer pursuing a merger with the Hershey Company.
The two companies had discussed a possible joining of forces for months but Hershey rejected a takeover bid worth $107 per stock share in June.
"As the world's leading snacking company, we remain focused on successfully executing our strategy to deliver both sustainable top-line growth and significant margin expansion and are well-positioned to continue to deliver value to our shareholders," Mondelez Chairman and CEO Irene Rosenfeld said in a statementMonday. "Following additional discussions, and taking into account recent shareholder developments at Hershey, we determined that there is no actionable path forward toward an agreement."
Mondelez is best known as the maker of Oreo and Chips Ahoy! cookies along with Triscuit crackers and Nabisco snack foods.
"While we are disappointed in this outcome, we remain disciplined in our approach to creating value, including through acquisitions, and confident that our advantaged platform positions us well for top-tier performance over the long term," Rosenfeld added.
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Aug 29, 2016 | CNBC
View clip here: http://beta.criticalmention.com/app/#clip/view/23915744?token=0c458ffc-d12b-491a-b3ee-67d7c47290af
Rough transcript: we have breaking news on mondelez and hershey. what's happening, seema? >>we're seeing a press release hitting the wires. mondelez international said it's no no longer pursuing a combination with hershey. it will no longer pursuing the combination with hershey it will continue to execute plans to deliver sustainable growth in shareholder value. mondelez said they're determined that there's no actionable path forward toward an agreement with hershey and it will update investors at the upcoming barclays global consumer staples conference. we look at shares, no big movements in shares of mondelez but hershey moving after hours down now about 9.6% again now mondelez international no longer pursuing a combination with hershey. back to you. >> thank you. hershey shares down almost 10% on this news. >> yeah. i mean, obviously, a big take over premium is always in hershey then you had the news of the approach and seems that the hershey trust fended off another suitor it just became too thorny to try to navigate that process. they have a lock on that board. >> but by the way guy, it did trigger some changes or maybe some self reflection at hershey by focusing on the fact that they have fended people off. you could almost argue it's protectionist. >> it's interesting. i agree with you 100%. you and mike make great points. but how do you trade the stock in the wake of this. i think it's trading 101 last i looked. below there now. i mean, this stock if you recall, i think back in july and the news broke, trading around 98 or so and took off from there so even though this suitor might be out, understanding that hershey is probably not in a race to sort of put themselves up for sale, i think other suitors come forth. and if you can buy it at 98 again and sort of round trip where the stock took off from, i think you take an absolute shot right there. >> all right. well you know, mondelez did no favors saying it wasn't going to close that cadbury factory and then closing it down. >> they probably just don't have the trust of the hershey community at this point to say ok we're willing to take your work for this. >> i think you have to be -- you can't underestimate that kind of stuff and how it can blow up a deal and oftentimes people want to look at the numbers and say where's the balance sheet but i think that kind of stuff and the community outpouring is huge. >> especially because the hershey trust, it is local people. they are pillars of the community. they want to protect this. it's not as if they're looking for a global company to come in and take on this. >> i've been to that hershey park and the factory tour but then at the end it was a box of cocoa puffs and not kisses. we were so disappointed. that's history. thank you for joining us, guy. >> cocoa puffs, huh? that is fantastic.
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Aug 29, 2016 | Bloomberg
View clip here: http://beta.criticalmention.com/app/#clip/view/23915764?token=0c458ffc-d12b-491a-b3ee-67d7c47290af
Rough transcript: we do have breaking news coming across the terminal, which is kind of a big deal. mondelez said it is no longer pursuing a combination with hershey. it says it is disappointed with the outcome but citing recent holder developments at Hershey it says there is no actionable path forward. it is going to continue executive plans to boost shareholder value, which is probably a good idea since that is the main job. this says they are no longer pursuing a combination with hershey. very interesting news out of mondelez. those shares if I go ahead and pull them up in the after hours, we saw a big spike and a recovery. not a lot of movement in shares. joe: Hershey is plunging over 8% right now on the news. obviously, the loss of a potential acquirer hitting their shares. matt: exactly what you would expect. there are not a ton of shares traded in the after hours in hershey. you can see the contracts and how many are traded right now. very interesting news. We’re going to continue to monitor it.
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Aug 29, 2016 | FBN
View clip here: http://beta.criticalmention.com/app/#clip/view/23915775?token=0c458ffc-d12b-491a-b3ee-67d7c47290af
Rough transcript: well shares of hershey, more news on that, dropping 11% after-hours. this on the news thatthe mondelez international no longer pursuing a combination with hershey. the mondelez ceo is saying, quote, our proposal to acquire hershey reflectled our conviction that combining two iconic american companies would create an industry leader with global scale in snacking abd confectionery and a strong portfolio of complimentary brands. taking into account recent shareholder developments at hershey, we determined that there is no actual path forward toward an agreement. and as a result of all this, hershey shares went way down after hours.
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Aug 29, 2016 | Bloomberg
View clip here: http://beta.criticalmention.com/app/#clip/view/23915778?token=0c458ffc-d12b-491a-b3ee-67d7c47290af
Rough transcript: one stock moving in late US trading is hershey. this after mondelez says it is no longer pursuing its combination with hershey. you can see the stock down 11.5% in after hours. mondelez says it is disappointed with the outcome and there is no actionable path forward. let's bring in Bloomberg news deal reporter Ed Hammond who has been tracking the deal. so ed what's happened? why did it fall apart? >> well it never really got going. i think certainly when it became public that hershey was under pursuit by mondelez, hershey immediately sort of resisted, rejected the offer that was out there. and since then it doesn't really seem like there has been much engagement. although as far as we know, before this thing went public a couple of months ago, they had been talking behind the scenes and people at mondelez believed they people at hershey were potentially open to a deal here. matt: but now they don't believe that. i was looking back at the bloomberg to see what kind of shareholder activity irene rosenfiled meant that could have led to this change. i saw that hershey is controlled by this trust that was under fire for lavish spending. there was an investigation. they promised to do better. what is the story with the owners of hershey? >> hershey has one of the most interesting corporate structures of any american company and is sometimes referred to as the best defended company because of that. it's this sort of weird charlie and the chocolate factory type thing. >> rip gene wilder >> rip gene wilder indeed. it's sort of fitting these two pieces of news would come on the same day. so hershey essentially has a normal corporate board as every company does. but it also has a trust and the trust is charged with looking after the interests of hershey the town. they sort of get the ultimate call on whether or not this company gets sold so even if the board had approved the deal, it would then go to the trust and it is up to the trust to decide if the board made the right decision. it never went it that far on this occasion because obviously as mondelez has said there's no actionable path forward here. matt: mondelez would have to make it very appealing to the people to whom the trust reports for the trust to even think about it because they kind represent hershey the town in pennsylvania. >> this is what's difficult it is very sort of amorphous concept, who do they actually report to,what interest are they actually serving. there has been a lot of criticism because the trust is often under fire for apparently serving their own self interest, spending lots of money on their own activities, limousines, nice houses, etc. not necessarily best representing tjos bigger concept of what is in the best interest of the town of hershey. >> what happens next for mondelez? will they look at other acquisitions? >> i think they will look at other acquisitions. i think irene rosenfield has always been on the front foot in terms of wanting to go out and do deals and acquire things. but they are also seen as a target so it is possible someone bigger and better will go after them. this deal i'm sure was motivated by all kinds of good strategic reasons. but there has been whispering since it became public that they potentially were doing a defensive move. >> ed hammond, thank you very much indeed.
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Aug 29, 2016 | CNBC
View clip here: http://beta.criticalmention.com/app/#clip/view/23915796?token=0c458ffc-d12b-491a-b3ee-67d7c47290af
Rough transcript: more information on the end of mondelez's bid for hershey. which we just learned of this hour. seema? >> following this developing story around mondelez abandoning the deal with hershey and according to dow jones pricing seemed to be a big part of the discussion. dow jones quoting sources is reporting that mondelez had raised the hershey bid to $115 a share last week. hershey had said according to these reports that the price discussions would need to begin at $125 a share. so pricing seemed to be a big part of this discussion here. perhaps the reason we're not seeing the deal go through and again, still looking at shares of hershey down better than 11% after hours. kelly? >> yeah. moving even lower. mondelez investors looking a little bit relieved perhaps.
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