Hershey Media Report 9/1/16

National Coverage

1. This stock is up 12,000%—and one strategist says there's more room to run

   Aug 31, 2016 | CNBC

   By Rebecca Ungarino
   
   
   Break me off a piece of that stock — or so says one strategist regarding chocolate manufacturing giant Hershey's. Hershey's opened slightly higher Wednesday after the stock was pummeled Tuesday, dropping nearly 11 percent by the market's close after international confectionery manufacturer Mondelez said talks of a takeover bid of Hershey's had ended.
2. Would Oreo owner welcome deal with Kraft Heinz?

   Aug 31, 2016 | New York Post

   By Josh Josman
   
   
   3G Capital’s Kraft Heinz would find buying Oreo maker Mondelez International a tasty meal, Wall Street analysts said in a report on Wednesday. After Mondelez ended deal talks with chocolate maker Hershey, Morgan Stanley analysts say the snack giant should welcome a deal with Kraft Heinz.

Trade Coverage

3. Mondelez goes sour on bid for Hershey

   Aug 31, 2016 | Proactive Investors

   By Ben Waller
   
   
   Confectioner Mondelez International Inc (NASDAQ: MDLZ) has dropped its US$23bn takeover pursuit of rival Hershey Co (NYSE: HSY). Mondelez, which tabled a US$107 per share bid at the end of June and has offered to increase that to US$115 a share, said it could not see a way forward.
4. Hershey Back Over $100 After Mondelez Nosedive

   Aug 31, 2016 | Benzinga

   By Wayne Duggan
   
   
   Hershey Co. shares plummeted 10.7 percent on Tuesday when Mondelez International Inc disclosed it is no longer negotiating a possible Hershey buyout. The sharp drop in Hershey shares represents the largest one-day skid for the chocolate maker since 2002.
5. Hershey crashes 11% after chocolate merger talks end

   Aug 31, 2016 | Steelers Lounge

   The folks on the powerful Hershey Trust should be ashamed of themselves as they prepare to sun it up during the long holiday weekend.
6. Mondelez Cuts Off Hershey Merger Talks

   Aug 31, 2016 | Manufacturing.net

   By Andy Szal
   
   
   Snack food giant Mondelez announced this week that it officially halted merger talks with Hershey after some two months. The maker of Oreo cookies and Cadbury chocolate in late June offered a half-cash, half-stock bid of more than $22 billion — or $107 per share — for the iconic chocolate maker. Mondelez also vowed to assume the Hershey name and base its chocolate business in its namesake Pennsylvania city.
7. After Big Drop, Is it Time to Buy Hershey (HSY) Stock?

   Aug 31, 2016 | Zack's Investment Research

   Shares of The Hershey Company HSY plunged almost 11% since Mondelez International, Inc. MDLZ issued a press release on Aug 29 stating that it is no longer pursuing the probable merger with Hershey. In June, Mondelez offered to acquire the Pennsylvania-based chocolate maker for about $22.8 billion. Mondelez had offered to pay $107 a share, half in cash and half in stock. Mondelez had expected that the merger of the two food giants would create a global leader in snacking, confectionary and complementary brands
8. Mondelez to increase profit margins through intense cost cutting and future acquisition plans, including Kraft Heinz

   Aug 31, 2016 | The Country Caller

   By Angela Campbell
   
   
   Recently, Mondelez International Inc (NASDAQ:MDLZ) walked away from its pursuit of Hershey Co. (NYSE:HSY) after the chocolatier rejected the latest offer made for acquisition. This marked the end of several months’ talks of takeover which has the potential to create the biggest confection business around the globe. Following this, shares of Hershey plunged 12% whereas shares of Mondelez increased approximately 4% in the market. The acquisition was turned down due to the company’s ongoing restructuring efforts, as a result of which the management decided to turn down all transactions.
9. Mondelez Ends Hershey Takeover Bid

   Aug 31, 2016 | Specialty Food

   Mondelez has reportedly abandoned its efforts to buy the Hershey Co., which effectively ends the bid to create the world’s largest candy maker.
10. Hershey Could Break From the Past

    Aug 31, 2016 | Barron's

    Mondelez International’s announcement that it has ended discussions with Hershey regarding a possible combination is likely to cause a negative reaction to Hershey’s stock. However, in our experience, broken deals like these often lead to material changes at the intended target and sometimes accelerated shareholder value creation.
11. Mondelez Ends Pursuit of Hershey

    Aug 31, 2016 | CGT Staff

    Hershey last week rebuffed a new bid by Mondelez, the second one since June, and indicated it would be difficult to strike a deal before next year because of the shifting dynamics at its controlling shareholder, the Hershey Trust Co., according to people familiar with the matter.
12. Hershey continues to resist acquisition as Mondelez abandons merger talks

    Aug 31, 2016 | Crain's Chicago Business

    The latest failed acquisition of Hershey has renewed the chocolate maker's reputation as a company that can't be bought. After Mondelez International abandoned merger discussions on Monday, Hershey shares suffered their worst decline in almost 14 years 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.
13. If not Mondelez, then who?

    Aug 31, 2016 | Candy Industry

    By Bernie Pacyniak
    
    
    I’m a big fan of punny headlines, but occasionally I do throw in a teaser headline. So, here’s a spoiler alert… I really don’t know who is contemplating acquiring The Hershey Co. or, even more to the point, whether it ever will be acquired. But all of us love speculating about the future and projecting various scenarios. In this instance, I’d like to share some history along with the speculation.
14. USA stocks mostly lower as investors wait for jobs report

    Aug 31, 2016 | Junior College

    By Adam Carter
    
    
    Mondelez eventually reached the decision after several discussions, taking into account the recent changes in shareholders at Hershey. Mondelez International, Inc. announced on August 29 it has ended discussions with the Hershey Co. regarding a potential merger.
15. What next for Mondelez International and Hershey? - analysis

    Aug 31, 2016 | Just Food

    By Dean Best
    
    
    On Monday (29 August), Mondelez International revealed discussions with Hershey over its interest in the Kisses maker had ended. At the end of June, Hershey rejected a bid from Mondelez worth $22.83bn, or $107 a share. According to The Wall Street Journal, Mondelez chairman and CEO Irene Rosenfeld last week indicated to Hershey counterpart J.P. Bilbrey the snacks giant would be ready to return with an offer worth $115 a share (the Cadbury owner refused to comment on those reports when contacted by just-food yesterday).
16. Blog Coverage Mondelez Abandons Hershey Acquisition Bid

    Aug 31, 2016 | Baystreet

    Active Wall St. blog coverage looks at the headline from Mondelez International, Inc. (NASDAQ: MDLZ). For nearly two months, it was likely that the world would witness the merger of two American confectionary giants to form the world's largest confectionery company. However, the dreams came crashing when Mondelez International, Inc. in its press release on Monday, August 29, 2016, informed Wall Street that is was no longer pursuing its bid to acquire The Hershey Company (NYSE: HSY).
17. Mondelez May Become Target Following Failed Takeover of Hersheys (NASDAQ:MDLZ)

    Aug 31, 2016 | Consumer Eagle

    By Richard Conner
    
    
    Mondelez International (NASDAQ:MDLZ) shares were slightly higher Wednesday morning after a Bloomberg report suggested the chocolate maker could become a takeover target following its failed takeover bid on Hershey Co. (HSY).
18. Bill Ackman's Cry: "Worst Period of Performance" (HLN, VRX)

    Aug 31, 2016 | Investopedia

    By Rakesh Sharma
    
    
    Brief mention of the rejected bid from Mondelez. Relevant portion pasted below.
19. Hershey crashes 11% after chocolate merger talks end

    Sep 1, 2016 | Financial Spots

    By Betsy Taylor
    
    
    Mondelez, which makes Oreo cookies and other snack foods, initially proposed to buy Hershey earlier this summer, but Hershey is a notoriously hard company to propose mergers with since the majority of the shares are controlled by a nonprofit organization.
20. Mondelez drops takeover bid for USA chocolate maker Hershey

    Sep 1, 2016 | Junior College

    By Adam Carter
    
    
    "Our discussions with Hershey were motivated by our belief that a combination offered a unique opportunity to enhance the prospects of both companies", Mondelez said Tuesday. That decline was triggered when the Hershey Trust, the company's controlling shareholder, told the chocolate maker to terminate its proposed deal with Wrigley.
21. Oreo cookie maker Mondelez abandons bid for Hershey

    Sep 1, 2016 | LidTime.com

    By Mike Dooley
    
    
    Hershey rejected that $23 billion bid, and Mondelez said further talks were unsuccessful. A deal would have been subject to the Hershey Trust, a controlling shareholder.
22. Market Challenge: Moving On After Hershey, Mondelez Deal

    Aug 31, 2016 | Seeking Alpha

    By Michael Hopkins
    
    
    Mondelez has soured on its proposed takeover of Hershey. What's next for these food giants? Offer your opinion below!
23. Why We’re Still Sweet on Hershey–and Mondelez, Too

    Sep 1, 2016 | LidTime.com

    By Mike Dooley
    
    
    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 sweets.
24. Five things to know today, and is Kraft Heinz on the acquisition trail?

    Sep 1, 2016 | Pittsburg Business Times

    Brief mention of the rejected deal from Hershey. Relevant portion pasted below.

Local Coverage

25. Mondelez ends merger discussions with Hershey, leaving Mars' dominance in tact

    Sep 1, 2016 | The Village Sun Times

    By Max Garcia
    
    
    Amid changing consumer preferences for more organic, healthier and natural foods, Hershey's product portfolio of peanut butter cups and chocolate bars wouldn't have swung the revenue needle for Mondelez.

International Coverage

26. Mondelez says it won't buy Hershey, the shares of which are crashing

    Sep 1, 2016 | Senegal Actu

    By Merecedes Poole
    
    
    Mondelez says it won't buy Hershey, the shares of which are crashing
27. Mondelez Says No Longer Pursuing Combination with Hershey

    Sep 1, 2016 | Senegal Actu

    By Mercedes Poole
    
    
    In other company news, Hershey fell $12.02, or 11 percent, to $99.65 after snack food company Mondelez International said it was walking away from its proposal to buy Hershey for roughly $25 billion. (HSY). Mondelez had offered to buy Hershey for $107 a share in a cash and stock deal. 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%.

Full Text of Stories Below

National Coverage

1. This stock is up 12,000%—and one strategist says there's more room to run

   Aug 31, 2016 | CNBC

   By Rebecca Ungarino

   Break me off a piece of that stock — or so says one strategist regarding chocolate manufacturing giant Hershey's .

   Hershey's opened slightly higher Wednesday after the stock was pummeled Tuesday, dropping nearly 11 percent by the market's close after international confectionery manufacturer Mondelez said talks of a takeover bid of Hershey's had ended. But Eddy Elfenbein, editor of the Crossing Wall Street blog, said Tuesday on " Trading Nation " that he's bullish on the company he said has a historically strong record.

   "This is a 'set-and-forget' stock; you never want to bet against chocolate," Elfenbein said, calling Hershey's a company that an investor could "put in the corner of your portfolio, and forget you have it."

   Hershey's stock has risen over 12,000 percent since its initial public offering in 1978, eclipsing the return of the S&P 500 .

   It also happens to boast a dividend yield of about 2.5 percent.

   "Traders looking for a big pop in it, with a buyout announcement or something like that, all the legal issues, involving the trust; that's not going to happen," Elfenbein said, referring to legal controversies surrounding the Hershey Trust, founded by company founder Milton Hershey to fund a school for underprivileged children, which has drawn scrutiny over an investigation into the charitable trust's board.

   But following Tuesday's fall, some may believe the company's historical growth is not a good enough reason to buy it in the here and now.

   "There's good support at around $95," Ari Wald, technical analyst at Oppenheimer, said Tuesday on "Trading Nation."

   "I would say that there is a bit of a lack of direction in the trend here. It's a bit sloppy; I think it's going to probably knock around here over the next few months, so I guess from a trading perspective, I'd say that there are better opportunities elsewhere right here," he said.

   Wald called the stock "too late to sell" after the decline, though he would not call Hershey's trend entirely "broken" after Tuesday's movement.

   "I always say, investing is too difficult to buy these kind of neutral trends," he said.

   Hershey's had sought a sale of $125 per share from Mondelez, as compared to the $115 offered, Dow Jones reported. According to FactSet estimates, the company's target price per analysts is $104.57, and the FactSet analyst consensus is a "hold" rating.

   But Elfenbein deems this a sweet buy in the long run.

   "I mean, it's done so well for so long. I think it's raised its dividend every year over the last 30 or 40 years but one. This is as good as they get," he said.

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2. Would Oreo owner welcome deal with Kraft Heinz?

   Aug 31, 2016 | New York Post

   By Josh Josman

   3G Capital’s Kraft Heinz would find buying Oreo maker Mondelez International a tasty meal, Wall Street analysts said in a report on Wednesday.

   After Mondelez ended deal talks with chocolate maker Hershey, Morgan Stanley analysts say the snack giant should welcome a deal with Kraft Heinz.

   “We have looked at [Mondelez] and consider it to be a logical opportunity for Kraft Heinz: It has international exposure, solid relative top line growth outlook, and sizable cost reduction opportunities,” according to the report.

   The Post reported that Mondelez Chairman and Chief Executive Irene Rosenfeld wanted Hershey because she feared if she did not grow the business, it could become a target for Kraft Heinz.

   Mondelez is now pondering its next move after Hershey rejected its advances.

   Mondelez has a number of license agreements with Kraft, including Kraft cheese in certain international regions. Kraft would earn more if it sold those products itself.

   “Our sensitivity analysis of various assumptions estimates that the transaction could be anywhere from neutral to 40 percent accretive, although we believe our high-teens base case contains conservative but still realistic assumptions,” Morgan Stanley wrote in a report.

   Kraft Heinz rose 1.5 percent to $89.49, giving it a market value of $109 billion. Mondelez rose less than 1 percent to $45.02, valuing it at $70 billion.

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Trade Coverage

3. Mondelez goes sour on bid for Hershey

   Aug 31, 2016 | Proactive Investors

   By Ben Waller

   Confectioner Mondelez International Inc (NASDAQ: MDLZ) has dropped its US$23bn takeover pursuit of rival Hershey Co (NYSE: HSY).

   Mondelez, which tabled a US$107 per share bid at the end of June and has offered to increase that to US$115 a share, said it could not see a way forward.

   Hershey, which is controlled by a charitable trust, reportedly said it was unable to consider an offer until after a restructuring next year to resolve governance issues.

   It is also said to have ruled out accepting any offer less than US$125 a share.

   Mondelez owns formerly London-listed chocolate maker Cadbury and has brands including Oreo cookies.

   Hershey’s portfolio includes its eponymous Kisses and Reese’s Peanut Butter Cups.

   Mondelez chief Irene Rosenfeld said: “Following additional discussions, and taking into account recent shareholder developments at Hershey, we determined 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.”

   The Hershey trust holds 81% of the chocolatier's voting rights, making a sale impossible without its blessing.

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4. Hershey Back Over $100 After Mondelez Nosedive

   Aug 31, 2016 | Benzinga

   By Wayne Duggan

   Hershey Co HSY 0.26% shares plummeted 10.7 percent on Tuesday when Mondelez International Inc MDLZ 0.54% disclosed it is no longer negotiating a possible Hershey buyout. The sharp drop in Hershey shares represents the largest one-day skid for the chocolate maker since 2002.

   The Hershey/Mondelez deal seemed to face an uphill battle from the start. Back in June, Mondelez reportedly offered $23 billion for Hershey, or about $107/share. Hershey was asking for at least $125/share. Mondelez was reportedly willing to go as high as $115, but Hershey wouldn’t budge on its asking price.

   Any deal involving Hershey must be approved by the Hershey Trust, which has opposed potential deals in the past. In addition, a merger of two food companies as large as Hershey and Mondelez would likely have faced intense antitrust scrutiny from regulators.

   Hershey shares spiked from around $97 to as high as $117.15, when the buyout bid was first announced back in June. The stock then settled back into a trading range between $107 and $114 over the next couple of months before this week’s big fall back down to below $100.

   Shares seem to be stabilizing in early Tuesday trading, up 0.5 percent. Aside from the period since the bid was announced, this is the first time Hershey’s stock has traded above $100 since early 2015.

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5. Hershey crashes 11% after chocolate merger talks end

   Aug 31, 2016 | Steelers Lounge

   The folks on the powerful Hershey Trust should be ashamed of themselves as they prepare to sun it up during the long holiday weekend.

   The takeover would have combined Hershey's Reese's, Kisses, and namesake chocolates with Mondelez's Oreo, Cadbury brands, and Nabisco, creating a global snacking giant with $37 billion in annual sales.

   The Deerfield, Illinois-based Mondelez, formerly known as Kraft Foods, also produces popular lines of candies, including Oreo and Chips Ahoy! cookies. United States industrial snacks giant Mondelez International said Monday, August 29, it had dropped plans to merge with chocolatier The Hershey Company.

   Hershey shares experienced a 12% drop when the news broke that the deal has been abandoned - and Mondelez rose by nearly 4%.

   Mondelez shares were recently up 3.5%, while Hershey's sank 11% a day after Mondelez said it walked away from its months long pursuit of Hershey after the famous chocolatier rebuffed its latest offer. 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 spokeswoman Jennifer Sniderman said there had been additional discussions with Mondelez.

   In June, Hershey rejected a $107-a-share takeover offer from Mondelez.

   This item was corrected at 2:57 p.m. ET to show that without the Hershey combination, Mondelez could be relatively attainable by a larger player in the food-and-beverage industry.

   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.

   Mondelez's offer was half in cash and half in stock, sources have said. The chocolate maker also said that the trust would have to complete a full reconstitution prior to a deal being made, and that was not expected to take place until late in 2017 or later. The company will likely continue to hunt for acquisitions as implied by the CEO's statement. 
   

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6. Mondelez Cuts Off Hershey Merger Talks

   Aug 31, 2016 | Manufacturing.net

   By Andy Szal

   Snack food giant Mondelez announced this week that it officially halted merger talks with Hershey after some two months.

   The maker of Oreo cookies and Cadbury chocolate in late June offered a half-cash, half-stock bid of more than $22 billion — or $107 per share — for the iconic chocolate maker. Mondelez also vowed to assume the Hershey name and base its chocolate business in its namesake Pennsylvania city.

   The Hershey Trust, which controls 80 percent of the company's voting power, opposed previous acquisition bids and turned Mondelez down shortly after its offer became public.

   The Wall Street Journal reported Hershey last week rejected a second bid and signaled that a deal was unlikely before the end of the year.

   Mondelez officials said that discussions continued this summer but determined "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," Chairman and CEO Irene Rosenfeld said in a statement.

   Hershey shares fell by 11 percent in after-hours trading following the announcement.

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7. After Big Drop, Is it Time to Buy Hershey (HSY) Stock?

   Aug 31, 2016 | Zack's Investment Research

   Shares of The Hershey Company HSY plunged almost 11% since Mondelez International, Inc. MDLZ issued a press release on Aug 29 stating that it is no longer pursuing the probable merger with Hershey.

   In June, Mondelez offered to acquire the Pennsylvania-based chocolate maker for about $22.8 billion. Mondelez had offered to pay $107 a share, half in cash and half in stock. Mondelez had expected that the merger of the two food giants would create a global leader in snacking, confectionary and complementary brands. However, Hershey’s board of directors unanimously rejected the offer in June. Reportedly, in a second bid, Mondelez offered to buy Hershey for $25 billion ($115 per share).

   Mondelez eventually reached the decision after several discussions and indicated that there was no clear path toward an agreement. Reportedly, The Hershey Trust, which controls the majority of Hershey's shareholder votes, was reluctant about the sale. Moreover, significant transitional changes are underway at Hershey Trust and are anticipated to take time to complete.

   The big question now for investors is whether it’s the right time to buy Hershey stock after the big drop.

   Hershey’s sales trends have been weak since 2014 due to weak category trends, increased competition from broader snacking category and soft international growth due to macro headwinds.

   The U.S. chocolate category is gradually slowing down. A shift in consumer preference toward healthier snacks like nuts and increased competition from the broader snacking category is lowering the demand for chocolate. Moreover, changing shopping habits in the U.S., like channel shifting and e-Commerce, are hurting the chocolate category growth. In fact, the company is witnessing chocolate category softness in key international markets like China as well.

   Hershey’s lower-than-expected performance compelled it to lower its sales guidance twice this year.

   Had Hershey accepted Mondelez’ offer, it would have been synergistic for the company - giving it the necessary diversification from its chocolates/sugary confectionery products which are gradually seeing lower demand.

   As it is Hershey has been trying to shift focus to snack items and more premium products. In this regard, it launched Reese’s Snack Mix and Hershey’s Snack Bites canister this year.

   Last year in March, Hershey acquired a Californian producer of premium jerky products, KRAVE Pure to enter the fast growing meat snacks market.

   The Apr 2016 acquisition of New York-based barkTHINS premium chocolate snacking brand was also targeted on building the company’s better-for-you snacks portfolio.

   However, it’s not all grim for Hershey.

   Though sales have been weak, its margins have been better supported by supply chain savings and productivity gains. Moreover, in order to improve sales, Hershey is increasing innovation activity, marketing investments, making strategic acquisitions and diverting focus to snack items.

   However, we suggest it is better to remain on the sidelines until these efforts lead to some significant sales and volume improvement.

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8. Mondelez to increase profit margins through intense cost cutting and future acquisition plans, including Kraft Heinz

   Aug 31, 2016 | The Country Caller

   By Angela Campbell

   Recently, Mondelez International Inc (NASDAQ:MDLZ) walked away from its pursuit of Hershey Co. (NYSE:HSY) after the chocolatier rejected the latest offer made for acquisition. This marked the end of several months’ talks of takeover which has the potential to create the biggest confection business around the globe. Following this, shares of Hershey plunged 12% whereas shares of Mondelez increased approximately 4% in the market. The acquisition was turned down due to the company’s ongoing restructuring efforts, as a result of which the management decided to turn down all transactions.

   Once Hershey’s acquisition was off the table, the oreo maker moved on to Kraft Heinz Co (NASDAQ:KHC). Following this, RBC analyst David Palmer shared his opinions on Mondelez's plans and stated that the company might look for other acquisition opportunities. However, in the meantime, the company would benefit from internal cost cutting as encourage by activists such as Ackman because of its disappointing profit margins.

   Later, it could continue to expect to drive its earnings from potential Kraft Heinz acquisition bid. Moreover, he is not sure what motivated the New Jersey-based organization to make a move towards this deal but is confident that the company would have thought that it could acquire the most attractive CPG assets of the world, to enhance shareholder value amid a challenging environment. As a result, he reiterated Mondelez stock as an Outperform while maintaining a $54 price target.

   Additionally, he further added that Mondelez remains to be an essential under earner in the US food industry, with EBIT margin of 15.4% compared to industry average of 17.5%. Thus, Palmer believes that the Kraft-Heinz acquisition remains to be one of the most logical steps of the organization. Furthermore, he believes that the merger would only strengthen the company even more, as even in a slow growth industry, its sales are growing 2% higher than competitors despite a challenging cost environment. This could give analysts hopes of a growing top and bottom lines as a result of differentiated product portfolio.

   Due to these expectations, FactSet Fundamentals has 15 Buy, two Overweight, and five Hold ratings on Mondelez stock. Additionally, investors are bullish and are expecting the company to rebound with future acquisition plans. The average price target is $50.11, reflecting increasing potential of 12% above the closing price of Tuesday.

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9. Mondelez Ends Hershey Takeover Bid

   Aug 31, 2016 | Specialty Food

   Mondelez has reportedly abandoned its efforts to buy the Hershey Co., which effectively ends the bid to create the world’s largest candy maker.

   Mondelez CEO Irene Rosenfeld expressed her disappointment that a deal couldn’t come to fruition. The company made a $23 billion offer for Hershey in June, and had proposed to rename the new company Hershey while allowing the chocolate headquarters to remain in Hershey, Pa. However, Hershey reportedly wanted $125 per share, while Mondelez had proposed $115.
   
   Hershey also said that its trust would need to complete a reconstitution before there could be a deal. The company isn’t likely to have a reconstituted board of directors until the end of 2017, reports the Wall Street Journal.

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10. Hershey Could Break From the Past

    Aug 31, 2016 | Barron's

    Mondelez International’s announcement that it has ended discussions with Hershey regarding a possible combination is likely to cause a negative reaction to Hershey’s stock. However, in our experience, broken deals like these often lead to material changes at the intended target and sometimes accelerated shareholder value creation.

    In our view, the Hershey (ticker: HSY ) board now has a fiduciary duty to develop with the management team a strong business case for why it can create value as an independent entity rather than link up with a multinational competitor. After two highly challenging years of category-deceleration in the U.S. and a reversal of momentum in China, we believe the company should explore accelerating its margin targets, rekindling its consumer-demand framework, or selling China into a joint venture.

    Some investors may question whether the board would feel obligated to create an accelerated plan given the Hershey Trust’s 80% control of the stock. However, we think the board takes its fiduciary duty very seriously and recognizes the existential question at play.

    Note: Mondelez ( MDLZ ) cited “recent shareholder developments” at Hershey as a reason for terminating discussions. We think this refers to the Attorney General office’s acceptance of the resignation of five members of the Hershey Trust.

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11. Mondelez Ends Pursuit of Hershey

    Aug 31, 2016 | CGT Staff

    Oreo cookie maker Mondelez International Inc. ended its pursuit of Hershey Co. after the famed chocolatier rebuffed its latest acquisition offer, putting an end to a months long takeover campaign that would have created the world’s largest candy company.
     
    Hershey last week rebuffed a new bid by Mondelez, the second one since June, and indicated it would be difficult to strike a deal before next year because of the shifting dynamics at its controlling shareholder, the Hershey Trust Co., according to people familiar with the matter.
     
    Mondelez said in a statement late Monday there was “no actionable path forward” to buy Hershey, which confirmed that there were additional communications with Mondelez but wouldn’t comment further.
     
    Mondelez’s failure to pull off the takeover, which would likely have been valued at upward of $25 billion, will likely reinforce the notion among analysts and investors that Hershey is unattainable as an acquisition target in light of its majority ownership by a trust that for years has been reluctant to sell.
     
    The Hershey Trust, which controls about 81 percent of Hershey’s shareholder votes, is in the midst of overhauling its own board of directors following an investigation by state regulators, and investors had wondered if Mondelez would be able to win its approval by striking during a period of uncertainty.
     
    Mondelez Chief Executive Irene Rosenfeld walked away from her goal of creating a snacking and confectionary giant that would benefit from giant global scale and the combination of major brands like Chips Ahoy and Reese’s peanut butter cups.
     
    Hershey’s stock dropped 12% after market hours Monday while shares of Mondelez rose 3.4%.
     
    Mondelez initially made a roughly $23 billion bid for Hershey, The Wall Street Journal first reported in June. Hershey rejected the offer, which amounted to $107 a share, half in cash and half in stock.
    

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12. Hershey continues to resist acquisition as Mondelez abandons merger talks

    Aug 31, 2016 | Crain's Chicago Business

    The latest failed acquisition of Hershey has renewed the chocolate maker's reputation as a company that can't be bought.
    

    
    After Mondelez International abandoned merger discussions on Monday, Hershey shares suffered their worst decline in almost 14 years 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% 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 suitors.
    
    "We do not believe another bidder is likely to emerge for Hershey," Chris Growe, an analyst at Stifel Financial, said in a report. "We believe Mondelez's challenge in pursuing Hershey will likely dissuade other buyers from attempting a transaction."
    
    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 $98.75 in New York, a 12% plunge that erased much of their recent rally. The stock had climbed 25% this year through Monday's close, with most of that gain coming when news of Mondelez's approach became public.
    
    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 4.8% to $44.09 in New York.
    
    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."
    
    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% 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," Bloomberg Intelligence analyst Ken 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 Journal previously reported on the negotiations.
    
    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, controls about 81% 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.
    

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13. If not Mondelez, then who?

    Aug 31, 2016 | Candy Industry

    By Bernie Pacyniak

    I’m a big fan of punny headlines, but occasionally I do throw in a teaser headline. So, here’s a spoiler alert… I really don’t know who is contemplating acquiring The Hershey Co. or, even more to the point, whether it ever will be acquired. But all of us love speculating about the future and projecting various scenarios. In this instance, I’d like to share some history along with the speculation.

    Earlier this week, Mondelez International’s Chairman and CEO Irene Rosenfeld officially announced that it will no longer pursue discussions with Hershey since “there is no actionable path forward toward an agreement… 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."

    That, however, doesn’t mean Mondelez is done looking. As she added, "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 those of us who have seen this scenario before can attest, it’s not easy to purchase a company that’s owned by a trust, particularly by a trust that actually controls the company. 

    The Hershey Trust Co., which was established by Milton Hershey in 1909, became the funding mechanism for the orphanage that Milton and Catherine Hershey founded that same year. The Milton Hershey School, as it’s known today, provides free schooling for needy boys and girls from kindergarten through high school.

    Keep in mind that the board members of the Trust own 81 percent of the voting power behind The Hershey Co. Naturally, it’s the Hershey Co. that’s the revenue generator for the Trust. But being owned by a Trust doesn’t necessarily preclude a sale of The Hershey Co.

    Those with a good memory can recall that it was the Trust that put The Hershey Co. on the block in 2002, citing a need to diversify its holding to ensure long-term financial stability, only to back off at the last minute after Wrigley outbid Cadbury Schweppes and Nestle with a $12.5-billion bid.

    The decision to walk away stemmed — in part — from a tremendous backlash from the local community as well as a temporary injunction from Pennsylvania’s attorney general in Daphne County Orphans court.

    That episode, however, didn’t put an end to the Hershey For Sale saga. Given its command of the U.S. chocolate market, Hershey has always been a tempting target. When Cadbury revisited the scene in 2007, looking to merge with the company, the Trust put the kibosh on a potential deal, prompting an exasperated Rick Lenny, chairman and ceo at the time, to resign. Ironically, Cadbury was gobbled up by Kraft slightly more than two years later.

    And that brings us to Mondelez today, which reportedly offered $25 billion for America’s chocolate leader. The Trust’s board rejected that offer. However, five of those members will be leaving, three by year’s end and two by 2017, thanks to — oh wait, doesn’t this sound familiar — a settlement following an investigation by Pennsylvania’s attorney general. 

    Based on Rosenfeld’s statement, Mondelez will continue to pursue other companies. Although companies such as Lotte and Ferrero have been mentioned by some as potential candidates,  I realistically don’t see either being in the mix since I believe those two also want to be buyers. Besides, how big is too big?

    But back to Hershey, I’m a bit on the fence on this one. In 2002, I wrote an editorial regarding the possible sale of the chocolate maker entitled, “What would Milton do?” Back then I believed that Hershey should not be sold. Yes, the Trust having voting control remained an issue, but there were too many arguments to keep the status quo intact: heritage, local economy, jobs, management, etc.

    Today, I admit, I initially waffled a bit, given the global economics involved. Nonetheless, I’m still not a fan of mega-mergers and acquisitions. Those so-called synergies typically lead to consolidation, corporate culture wars and consumer callousness. So what would Milton do? I think he’d keep the company independent and continue to make acquisitions. And he’d change either the voting clout of the Trust and/or its membership. And then he’d focus on making the best and most affordable chocolates and candies. 

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14. USA stocks mostly lower as investors wait for jobs report

    Aug 31, 2016 | Junior College

    By Adam Carter

    Mondelez eventually reached the decision after several discussions, taking into account the recent changes in shareholders at Hershey.

    Mondelez International, Inc. announced on August 29 it has ended discussions with the Hershey Co. regarding a potential merger.

    Hershey's sales trends have been weak since 2014 due to weak category trends, increased competition from broader snacking category and soft worldwide growth.

    Hershey shares experienced a 12% drop when the news broke that the deal has been abandoned - and Mondelez rose by nearly 4%.

    Confectionary conglomerate Mondelez International has chose to abandon its bid to take over American confectioner Hershey after having a $23bn (€20.5bn) offer rejected.

    Last June, Mondelez proposed to buy Hershey for about $23 billion or $107 per share, an offer Hershey rejected.

    Mondelez boss Irene Rosenfeld said a deal "combining two iconic American companies" would have created an "industry leader with global scale".

    "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".

    From a strategic perspective, we haven't wavered from our stance that a deal could have been advantageous for both firms, affording Mondelez entry into the attractive USA chocolate space while also facilitating Hershey's expansion beyond its home turf.

    The Wall Street Journal reported yesterday Hershey had turned down a second bid from Mondelez last week.

    The Hershey Trust, which controls about 81 per cent of Hershey's shareholder votes, is in the midst of overhauling its own board of directors following an investigation by state regulators, and investors had wondered if Mondelez would be able to win its approval by striking during a period of uncertainty. 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 also has stood between Hershey and a deal with Cadbury, which was ultimately acquired by Kraft Foods.

    The company reneged on a pledge to keep open a plant near Bristol - resulting in 450 job losses. "In hindsight to us, it looks poorly planned".

    
    

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15. What next for Mondelez International and Hershey? - analysis

    Aug 31, 2016 | Just Food

    By Dean Best

    On Monday (29 August), Mondelez International revealed discussions with Hershey over its interest in the Kisses maker had ended.
    

    At the end of June, Hershey rejected a bid from Mondelez worth $22.83bn, or $107 a share. According to The Wall Street Journal, Mondelez chairman and CEO Irene Rosenfeld last week indicated to Hershey counterpart J.P. Bilbrey the snacks giant would be ready to return with an offer worth $115 a share (the Cadbury owner refused to comment on those reports when contacted by just-food yesterday).

    The WSJ reported Mondelez was again met with a no from Hershey, although the company said it would start talking if an offer worth a minimum of $125 a share was tabled. The newspaper also said Hershey had indicated its controlling shareholder, The Hershey Trust, would need to complete changes to its board structure before an agreement could be struck.

    "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," a "disappointed" Rosenfeld said on Monday. "Following additional discussions, and taking into account recent shareholder developments at Hershey, we determined that there is no actionable path forward toward an agreement."

    In some ways, the fact Mondelez International was attracted to Hershey was a surprise - and the fact the US group rebuffed the interest was not.

    Some industry watchers touted the scale in chocolate Mondelez could enjoy from an acquisition of Hershey; the combination of the two businesses would have created the world's largest chocolate maker. However, not everyone was convinced a move for Hershey was the right one. After Mondelez's interest in Hershey became public, Alexia Howard, an analyst covering both companies for US investment bank Sanford Bernstein, called into question the Milka maker's interest in the Reese's owner. A move for Hershey, Howard said, would lead to an increase in the proportion of Mondelez's portfolio made up by sugary snacks, which, she argued, would be against the tide of rising consumer interest in the US in the links between diet and health.

    That Mondelez failed with its bid (or reputed bids) for Hershey should not be a shock. Hershey's shareholder roster is dominated by The Hershey Trust, set up by company founder Milton Hershey and holder of 80% of the company's voting rights. Mondelez reportedly put forward a number of ideas to try to win over the board, including promises on jobs and moving the company's corporate HQ to Hershey in Pennsylvania. The way Mondelez was said to have structured its offer would also have meant the Hershey Trust would have remained a shareholder in the combined group, although it would no longer have been the largest.

    However, as recently as 2007, the Hershey Trust reiterated its intention to retain a "controlling" interest in the confectioner and has blocked previous takeover attempts that would compromise that position. In 2002 it rebuffed a move by Wrigley, in 2007 it prevented merger talks with Cadbury (now owned by Mondelez) and in 2010 the Trust prevented the chocolate group from bidding for the then independent Cadbury when the UK company was facing a hostile takeover bid from the then Kraft Foods – which was then spun off into Mondelez.

    This time around, the Hershey Trust seemingly remained a barrier to a deal but for different reasons. The affairs of the Hershey Trust have been under scrutiny in recent months amid allegations the charity misused funds, a situation in which it would have been unlikely to give consideration to a takeover bid. Last month, after talks with Pennsylvania's attorney general, the Hershey Trust agreed to changes to how it would be run, although some of those changes will not come into place until the end of next year - making it unlikely to be in a position to give the green light to a deal.

    Mondelez made its announcement at 16:08 ET on Monday, just after trading on the New York Stock Exchange had closed. Its shares rose yesterday as the market digested the announcement, closing up almost 4%.

    In the short term, little will change at Mondelez. Next week, the company will be among the food manufacturers presenting at the Barclays Capital global consumer staples conference in the US, in which the company will most likely talk about its ongoing work to grow in areas such as "well-being" snacks, convenience and increasing sales in the e-commerce channel. There will also likely be an update on Mondelez's progress towards hitting its targets for adjusted operating margins of 15-16% in 2016 and 17-18% in the 2018 fiscal year. Those present will also be keen to hear about Mondelez's business in emerging markets, countries that were central to the investment thesis on the company when it was set up in 2012 but where its performance has been mixed.

    Pablo Zuanic, an analyst covering Mondelez at US investment and trading firm Susquehanna International Group, believes if Mondelez has ambitions to build scale in confectionery it could look elsewhere. "If the company indeed wants to expand its confectionery and snacks footprint, it should seek acquisitions or mergers with other large scale companies in that space: overseas we would think of confectionery companies like Lotte, Ferrero, or Perfetti Van Melle, and in snacks, of course, there are smaller players in the natural/organic space," Zuanic says.

    Some on Wall Street believe part of the reason Mondelez was interested in Hershey was to bulk up and make it less likely to be the subject of a takeover bid itself. Now Mondelez's move for Hershey has failed, could it become a target? "In the end, we think Mondelez will just run out of time and will be taken over - by Kraft Heinz," Zuanic says.

    In late July, Zuanic suggested Mondelez's interest in Hershey "may be of a more defensive" and, given the consolidation taking place in the food sector, proposed the company could become a target. He noted as "rather telling" how Mondelez had last month appointed to its board an executive who had worked for HJ Heinz for a decade before it was taken over by 3G Capital and Warren Buffett.

    Chris Growe, an analyst at US investment bank Stifel Nicolaus, noted the rise in Mondelez's share price after its announcement on Monday and suggested some in the market could be awaiting a move from Kraft Heinz. "We believe the prospect of near-term dilution weighed on the Mondelez shares and, furthermore, investors seeking an opportunity from a combination between Mondelez and the Kraft Heinz Company likely saw this transaction as extremely prohibitive - perhaps even defensive - to any near-term windfall."

    Speculation over the M&A ambitions of 3G and Buffett are starting to heat up again. Last week, Zuanic pointed to an SEC filing from Kraft Heinz that showed the company had made a so-called mixed shelf registration to sell shares. Zuanic combined the move with what he called Kraft Heinz's "lacklustre" progress on synergies (enjoying the benefit of synergies was central to the merger of Kraft Foods Group and Heinz) and said it "could mean an M&A move [is] likely".

    The prospect of a combination between Mondelez and Kraft Heinz has been the subject of talk in the market on and off for a year and spiked when activist shareholder Bill Ackman bought a stake in the snacks maker last year. At the time, Buffett appeared to pour cold water on the prospect of Kraft Heinz making a move for Mondelez - in the near term at least.

    Other industry watchers have still recently touted a combination between Mondelez and PepsiCo's Frito-Lay snacks arm due to the international scale the enlarged business could enjoy.  In 2013, activist investor Nelson Peltz called on PepsiCo to merge its snacks business with Mondelez, which Indra Nooyi, the chairman and CEO of the Pepsi cola and Lay's crisps maker, resisted. A year later, Peltz gave up on his bid to get the entities to combine, although a number of analysts on Wall Street speculate a deal could happen in the future.

    Shares in Hershey tumbled yesterday, closing down more than 10% at $99. The Hershey Trust and the company's management faced some criticism from commentators for not accepting Mondelez's offer (or engaging with the reported interest from Rosenfeld in tabling a higher bid).

    While the Hershey Trust looks to implement changes to the way it is run and its board is constituted after last month's agreement with Pennsylvania's attorney general, the confectioner itself is set to enter the key US selling season of Hallowe'en with an expectation that, for 2016 as a whole, the country's combined candy, mint and gum category will not have grown as quickly as the company had expected earlier in the year. In July, Hershey lowered its forecast for annual sales and, alongside the company's continued challenges in China, its downbeat outlook on the US was central to the cut - its second of 2016.

    Looking further ahead, Sanford Bernstein's Howard suggests a sale of Hershey "might be possible once the new Hershey Trust board gets its bearings" but she acknowledges such a prospect would need the support of the new directors on the trust and the Pennsylvania attorney general. "It's worth remembering that, in the past, the Hershey Trust has prioritised picking directors with strong ties to the community and opposed to selling the company, although this might change given the extent of the shake-up the Trust is undergoing," Howard said.

    Zuanic, while underlining that he does not cover Hershey, says he assumes the trust will "eventually see the light - eventually being the key word though". He says: "That may not be until 2018, with the current Trust nine-member board set to lose five members - three by end of this year and two by end of 2017 - and having nine new members coming in over the next two years, as the Trust board is expanded to 13 from nine, as per the recent agreement with the attorney general.

    "By seeing the light we mean: the Trust should diversify [as] Hershey is at a disadvantage by remaining mostly landlocked in NAFTA, and a merger of some sort - into the broader snacks arena, or within confectionery to gain relevant international access - will eventually be required by Hershey, otherwise Hershey value will be eroded."

    Could, then, we see Hershey be proactive and look to combine with some of its more international peers? Hershey could, on one hand, continue to look for and make small, bolt-on acquisitions of its own, as it has over the last couple of years in the shape of US jerky maker Krave and BarkThins owner Ripple Brand Collective. On their own, such deals barely move the sales needle but, cumulatively, could lead to the mix of Hershey's portfolio changing towards more on-trend parts of the snacks sector but some predict the upcoming changes on the board of the Hershey Trust could lead to greater pressure on management for bold moves.

    "While Hershey has traditionally been viewed as an extremely low probability M&A candidate, the combination of the company's willingness to engage with Mondelez and the WSJ report indicating that board turnover may have played some role in stifling discussions both strike us as a change in tone which could linger in sentiment surrounding the stock," Morgan Stanley analyst Matthew Grainger says. "Additionally, this development will likely enhance pressure on Hershey's management to identify more aggressive plans to drive margin expansion and accelerate value creation at the standalone company over the coming months."

    Stifel Nicolaus' Growe was one industry watcher who thought the rationale for a combination between Mondelez and Hershey was strong. "While we have no knowledge of any active M&A discussions, we do not believe another bidder is likely to emerge for Hershey. We believe Mondelez's challenge in pursuing Hershey will likely dissuade other buyers from attempting a transaction. While we believe Nestle would remain an interested party in the Hershey assets, we believe it too would likely encounter the same challenges Mondelez encountered," Growe says.

    Hershey has worked to broaden its business geographically in recent years but those efforts have centred on China and the company has suffered there in recent months. Its largest market overall remains the US and, although it has broadened its domestic portfolio through M&A, its core products are doing business in a mature category that has slowed. With its top-line prospects looking weak, the company's management could look to cut costs to boost profitability and generate value - or take the plunge and plump for bigger-bang M&A.

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16. Blog Coverage Mondelez Abandons Hershey Acquisition Bid

    Aug 31, 2016 | Baystreet

    Active Wall St. blog coverage looks at the headline from Mondelez International, Inc. (NASDAQ: MDLZ). For nearly two months, it was likely that the world would witness the merger of two American confectionary giants to form the world's largest confectionery company. However, the dreams came crashing when Mondelez International, Inc. in its press release on Monday, August 29, 2016, informed Wall Street that is was no longer pursuing its bid to acquire The Hershey Company (NYSE:HSY). 

    Briefing and Reaction

    Earlier this June, the makers of Oreo had put forward a bid of more than $23 billion for the potential takeover of Hershey. In its offer, Mondelez was to pay $107 per share in cash and stock for every Hershey's share with an addition of 10% premium. However, the Hershey's board then had immediately turned down the cash and stock offer and stated that "that it provided no basis for further discussion between Mondelez and the company."

    Mondelez's CEO, Irene B. Rosenfeld, expressed her disappointment with the outcome of the talks with Hershey and stated that there was "no actionable path forward toward an agreement". In her statement she said:

    "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."

    Deal Breaking Trust

    It is reckoned that the deal was abandoned after the Hershey Trust, asked the Cadbury owner to end its proposed deal with Wrigley. The Hershey Trust, established by Milton Hershey and his wife Catherine in 1905, owns 34% of the company's common stock and yet controls 81% of the voting power. The Trust has been at the helm in turning down various offers of takeover and mergers in the past. It is regarded as the thorn when Wm. Wrigley Jr. Company offered to takeover Hershey in 2002, and was again in the line of fire when Hershey wanted to buy Cadbury eight years later but was turned down by the trust.

    Meanwhile, had the deal gone through, Hershey, which generated 90% of its revenue from North America, mostly from chocolate sales, would have to give up its U.S. license for manufacturing Kit-Kat, a product of Nestle (Mondelez's global competitor).

    Stock Performance

    Mondelez International's shares ended 3.95% higher finishing the trading session at $44.74 on August 30, 2016. The stock recorded a total volume of 14.1 million shares, which was higher than its 3 months average volume of 7.36 million shares. In the last one month and the previous six months, the company's share price has gained 2.90% and 9.46%, respectively. Currently, the stock traded at a P/E ratio of 9.63.

    Following news of the failed takeover bid, The Hershey Company's share price, on the other hand, saw a correction of 10.76% at the end of the trading session on Tuesday, 30 August, 2016, finishing the day at $99.65. The stock traded at a total volume of 7.95 million shares, which was higher than its 3 months average volume of 1.78 million shares. It is worth noting that the company's shares were trading near their all-time high for nearly two months.

    For the last month Hershey's stock lost 9.65%, but it has advanced 9.29% in the last six months and 13.70% year-to-date.

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17. Mondelez May Become Target Following Failed Takeover of Hersheys (NASDAQ:MDLZ)

    Aug 31, 2016 | Consumer Eagle

    By Richard Conner

    Mondelez International (NASDAQ:MDLZ) shares were slightly higher Wednesday morning after a Bloomberg report suggested the chocolate maker could become a takeover target following its failed takeover bid on Hershey Co. (HSY). The report said packaged-food giant Kraft Heinz (KHC) is the most likely candidate for a takeover of Mondelez, and cited a Stifel analyst who said one reason why Mondelez shares rose after the Hershey deal was terminated was due to the prospect of a Kraft Heinz takeover. If a deal with Kraft Heinz materializes, Mondelez would be reunited under the same roof after splitting from Kraft Foods in 2012, the report added.
    

    About 6.18 million shares traded hands. Mondelez International Inc (NASDAQ:MDLZ) has risen 8.80% since January 27, 2016 and is uptrending. It has underperformed by 6.77% the S&P500.

    Mondelez International, Inc. is a snack company. The company has a market cap of $72.52 billion. The Firm makes and markets snack food and beverage products for clients in approximately 165 countries around the world. It has a 9.65 P/E ratio. The Firm operates through five divisions: Latin America; Asia Pacific; Eastern Europe, Middle East, and Africa; Europe, and North America.

    The information provided on this website is for individual use only and should be considered strictly informational in nature. The article is not advice, and should not be treated as such. We are in no way responsible for any investment loss or damages. All content in our articles is for informational purposes only and should not be construed as an offer or solicitation of an offer to buy or sell securities. Neither the information presented nor any statement or expression of opinion, or any other matter herein, directly or indirectly constitutes a solicitation of the purchase or sale of any securities.

    Viewers should always consult with a licensed securities professional before purchasing or selling any securities of companies profiled or discussed in our articles. It is possible that a viewer’s entire investment may be lost or impaired due to the speculative nature of the companies profiled. We make no recommendation that the securities of the companies profiled or discussed in on our website should be purchased, sold or held by investors.

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18. Bill Ackman's Cry: "Worst Period of Performance" (HLN, VRX)

    Aug 31, 2016 | Investopedia

    By Rakesh Sharma

    Pershing Square also adjusted its stake in snack maker Mondelez International. Likely, Ackman is relieved that the company withdrew its offer for candy maker The Hershey Company (HSY).
    

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19. Hershey crashes 11% after chocolate merger talks end

    Sep 1, 2016 | Financial Spots

    By Betsy Taylor

    Mondelez, which makes Oreo cookies and other snack foods, initially proposed to buy Hershey earlier this summer, but Hershey is a notoriously hard company to propose mergers with since the majority of the shares are controlled by a nonprofit organization.

    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 hard to strike a deal before next year.

    Analysts also believe Mondelēz's Hershey pursuit was spurred by recent changes within the Hershey Trust, which holds 81% of Hershey shares.

    Mondelez scrapped its bid to buy Hershey as last week the chocolatier rejected Mondelez's second acquisition offer and hinted that the company can not strike a deal until next year because of "changing dynamics at its controlling shareholder, Hershey Trust Co., The Wall Street Journal (WSJ) reported, citing sources familiar with the matter". Following the announcement, Hershey shares plunged more 11% in after-hours trading.

    "Combining our two iconic American companies would create an industry leader with global scale in snacking and confectionery", said Irene Rosenfeld, Mondelez chairman and chief executive.

    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. T

    he 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.

    From a strategic perspective, we haven't wavered from our stance that a deal could have been advantageous for both firms, affording Mondelez entry into the attractive USA chocolate space while also facilitating Hershey's expansion beyond its home turf.

    The Wall Street Journal reported Hershey last week rejected a second bid and signaled that a deal was unlikely before the end of the year.

    Hershey raked in almost 90% of its revenue from North America previous year, mostly from chocolate sales.

    Acquisition of Hershey by Mondelez had been a long shot. 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 is controlled by the Hershey Trust, an entity that maintains over 80% of the voting power at Hershey.

    Hershey has succeeded in giving Mondelez the big kiss-off.

    Following investigation into its operations and governance by the state Attorney General's Office, the trust last month agreed to new restrictions, which will increase board size and limit members' tenure. 
    

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20. Mondelez drops takeover bid for USA chocolate maker Hershey

    Sep 1, 2016 | Junior College

    By Adam Carter

    "Our discussions with Hershey were motivated by our belief that a combination offered a unique opportunity to enhance the prospects of both companies", Mondelez said Tuesday. That decline was triggered when the Hershey Trust, the company's controlling shareholder, told the chocolate maker to terminate its proposed deal with Wrigley.

    Last week Hershey declined the latest Mondelez bid its second in the past three months. 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.

    At the time, the Hershey board insisted the offer did not warrant further discussions with Mondelez.

    After Mondelez International abandoned merger discussions on Monday,Hershey shares suffered their worst decline in nearly 14 years and left investors with a familiar taste.

    Hershey shares slid 11 percent in after-hours trading, to $99.25. Shares ofHershey tumbled almost 12 per cent in after-hours trading.

    This morning, Hershey spokesman Jeff Beckman acknowledged only that "there were additional communications from Mondelez". A deal would require the approval of the Hershey Trust, its largest shareholder, which has opposed a sale in the past.

    The decision comes after the Mondelez had a $23bn (£17.6bn) takeover offer for Hershey rejected in June. Shares of the Deerfield-based company rose as much as 4.8 percent to $44.09 in NY.

    Hershey reportedly upped its bid to around $25bn. She also said that though the management is disappointed with the outcome, it will remain committed to add value to the company either by acquisitions or by building investor confidence regarding long-term performance. 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.

    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. Under that deal, five current members, including Chairwoman Velma Redmond, will retire through December 31, 2017. According to WSJ, Ms. Rosenfeld last week privately indicated to CEO of Hershey, J.P. Bilbrey that Mondelezwas willing to increase the offer to $115 per share.

    The Hershey/Mondelez deal seemed to face an uphill battle from the start.

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21. Oreo cookie maker Mondelez abandons bid for Hershey

    Sep 1, 2016 | LidTime.com

    By Mike Dooley

    Hershey rejected that $23 billion bid, and Mondelez said further talks were unsuccessful. A deal would have been subject to the Hershey Trust, a controlling shareholder.

    Last week Hershey declined the latest Mondelez bid its second in the past three months. With weak stock performance and meek historical growth numbers, Hershey couldn’t have contributed enough synergies to justify the multi-billion dollar deal price.

    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”. An unfavorable de-rating Hershey shares are trading down in Monday’s after-hours ($98-99 per share).

    Long Island native Rosenfeld was likely restrained from making a sweeter offer by board member and shareholder activist Nelson Peltz, who is not so interested in protecting Rosenfeld, but instead in raising Mondelez’s share price, a food banker said.

    WSJ reported Hershey indicated no deal would be possible before a reconstitution of the Hershey Trust Co., which isn’t expected to happen until sometime next year. Investors were gleeful, too – Mondelez’ shares rose almost 4% yesterday.

    Hershey slumped 11 percent and Mondelez rose 4 percent Tuesday after Mondelez, which makes Oreo cookies and other products, said it would no longer pursue a combination with Hershey.

    Hershey Trust Co.is in the midst of reconstitution of its board of directors after they were alleged for profligacy, disregard for term limits, and self-dealing. 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. Hershey was looking for a bid of at least $125 (£96) a share. Under that deal, five current members, including Chairwoman Velma Redmond, will retire through December 31, 2017. Even if Mondelez were able to bring Hershey to a consensus, the amalgamation of the two companies wouldn’t have made so much sense, especially given the high-calorie food Hershey is known to sell.
    

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22. Market Challenge: Moving On After Hershey, Mondelez Deal

    Aug 31, 2016 | Seeking Alpha

    By Michael Hopkins

    Mondelez has soured on its proposed takeover of Hershey.

    What's next for these food giants?

    Offer your opinion below!

    Update: Poll results are in:I'm staying with Hershey - 21.4%The combination would've been great, but I still like Mondelez - 23.3%Look at it this way - both companies pay a dividend - 9.7%This is a bummer - the combination would have created a giant - 13.6%There will be even bigger M&A deals in the food space - 32%

    Thanks to everyone who participated in today's poll. And stay tuned for more Market Challenge!

    *****

    Mondelez (NASDAQ:MDLZ) has soured on its proposed takeover of Hershey(NYSE:HSY). What's next for these food giants?

    Maybe it's best both companies went their separate ways? Maybe an even sweeter deal awaits Mondelez and/or Hershey?

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23. Why We’re Still Sweet on Hershey–and Mondelez, Too

    Sep 1, 2016 | LidTime.com

    By Mike Dooley

    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 sweets.

    DEAL’S OFF: Hershey fell $12.36, or 11 percent, to $99.30 after snack food company Mondelez International said it was walking away from its proposal to buy Hershey for roughly $25 billion.

    Hershey Trust, which wields 81 per cent of the voting power of Hershey shares, has historically been a thorn in numerous company’s deal-making efforts.

    Mondelez shares initially popped on news of its bid for Hershey, but the stock has since come back down to earth.

    In June, Mondelez had offered $107 a share for Hershey and reportedly had upped the bid recently to $115 a share.

    The deal would have created the world’s largest confectionary company.

    Both Hershey and Mondelez, which is based in Deerfield, Ill., have been under pressure amid a trend toward more-healthy eating and other factors. It said at the time that the offer provided “no basis for further discussion”.

    The source added that Hershey was holding out for an offer of $125 per share.

    “And we can confirm our understanding that Mondelez is no longer pursuing a combination with Hershey”.

    The Hershey Trust is revamping its board and management rules after coming under scrutiny for its spending practices. With weak stock performance and meek historical growth numbers, Hershey couldn’t have contributed enough synergies to justify the multi-billion dollar deal price. News stories displayed here appear in our category for Business and are licensed via a specific agreement between LongIsland.com and The Associated Press, the world’s oldest and largest news organization.

    Hershey is controlled by the Hershey Trust, an entity that maintains over 80% of the voting power at Hershey. We also believe that Mondelez is better off on its own as Hershey wasn’t as great an acquisition target anyway.

    The current Trust board has nine members, among which three of them will leave by the end of this year, and two by end of 2017, following an agreement between the Trust and the Pennsylvania Attorney General.
    

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24. Five things to know today, and is Kraft Heinz on the acquisition trail?

    Sep 1, 2016 | Pittsburg Business Times

    Kraft Heinz a likely acquirer soon, analysts say
    

    Buzz from financial analysts about Kraft Heinz Co. readying to buy again before 2016 ends is heating up, and the name that keeps coming up is Mondelez International Inc., according to StreetInsider.com and FoodNavigator-USA. Theformer cited a report from RBC Capital and the latter quoted Susquehanna. Mondelez (Nasdaq:MDLZ), a global snacks powerhouse whose brands include Oreo, Cadbury and Trident, dropped plans on Aug. 29 to buy The Hershey Co., weeks after the candy giant rejected its $23 billion offer.

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Local Coverage

25. Mondelez ends merger discussions with Hershey, leaving Mars' dominance in tact

    Sep 1, 2016 | The Village Sun Times

    By Max Garcia

    Amid changing consumer preferences for more organic, healthier and natural foods, Hershey's product portfolio of peanut butter cups and chocolate bars wouldn't have swung the revenue needle for Mondelez.

    Confectionary conglomerate Mondelez International has chose to abandon its bid to take over American confectioner Hershey after having a $23bn (€20.5bn) offer rejected. 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.

    Rosenfeld privately said to CEO of Hershey J.P. Bilbrey a week ago, she would be willing to increase the bid to more than $115 per share. The Wall Street Journal reported yesterday Hershey had turned down a second bid from Mondelez last week.

    Any deal involving Hershey must be approved by the Hershey Trust, which has opposed potential deals in the past.

    Hershey Trust Co.is in the midst of reconstitution of its board of directors after they were alleged for profligacy, disregard for term limits, and self-dealing. Under that deal, five current members, including Chairwoman Velma Redmond, will retire through December 31, 2017.

    Meanwhile, neither company would elaborate publicly on merger talks after the June 30 rejection, even as major media outlets were reporting that inside sources were saying that the talks were not dead.

    Mondelez brands include Cadbury chocolate and Trident chewing gum. In 2002, the trust put Hershey up for sale, citing a need to diversify its holdings.

    Both Hershey and Mondelez, which is based in Deerfield, Ill., have been under pressure amid a trend toward more-healthy eating and other factors. Hershey, meanwhile, saw its share price plummet 11% in late trading Tuesday, a day after Mondelez announced that it was dropping its bid. Morningstar Premium Members gain exclusive access to our full analyst reports, including fair value estimates, bull and bear breakdowns, and risk analyses. Investors were gleeful, too - Mondelez' shares rose almost 4% yesterday. Mondelez shares added 3.4%, to $44.50, in extended trading. 
    

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International Coverage

26. Mondelez says it won't buy Hershey, the shares of which are crashing

    Sep 1, 2016 | Senegal Actu

    By Merecedes Poole

    Hershey slumped 11 per cent and Mondelez rose 4 per cent Tuesday after Mondelez, which makes Oreo cookies and other products, said it would no longer pursue a combination with Hershey.

    Hence, scrapping the deal allows Mondelez to relay a sense of discipline as the declined proposition saves its board and the shareholders from the distractions of the proposed negotiation plans with Hershey's board. 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.

    Following the news of Hershey's rejection of Mondelez'takeover bid, Hershey stock sank 12% in Monday's after-hours trading session.

    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.

    So much for that much-hyped chocolate marriage between Hershey and Cadbury.

    WSJ reported Hershey indicated no deal would be possible before a reconstitution of the Hershey Trust Co., which isn't expected to happen until sometime next year. Global stock markets mostly rose on Tuesday, Aug. 30, 2016, as investors weighed the possibility and timing of another USA interest rate increase this year.

    Mondelez's initial $107-a-share offer in cash and stock would have valued Hershey at about $23 billion. Mondelez'sshares, on the other hand, rose 3% as investors seemed happy with the development. She also said that though the management is disappointed with the outcome, it will remain committed to add value to the company either by acquisitions or by building investor confidence regarding long-term performance. Hershey's starting point was $125 per share, the source reportedly said.

    The merged company would have overtaken Mars as the world's largest candy purveyor. That agreement called for three board members to retire by the end of the year, with two more stepping down by end of 2017.

    Deerfield, Ill., -based Mondelez's offer was made as sales at both companies have been under pressure.

    Another wrinkle: The Pennsylvania attorney general has the right to review a deal to acquire Hershey.

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27. Mondelez Says No Longer Pursuing Combination with Hershey

    Sep 1, 2016 | Senegal Actu

    By Mercedes Poole

    In other company news, Hershey fell $12.02, or 11 percent, to $99.65 after snack food company Mondelez International said it was walking away from its proposal to buy Hershey for roughly $25 billion. (HSY). Mondelez had offered to buy Hershey for $107 a share in a cash and stock deal. 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%. 

    Shares of Mondelez, meanwhile, gained almost 4 percent on the day.

    Hershey said in July it had rejected a $23 billion takeover bid by Mondelez.

    A successful merger between the two companies would have created the world's largest confectioner.

    As the New York Times pointed out, the past three months have seen a spike for both companies' stock, followed by some lesser peaks and valleys, with Hershey trending slightly upward as Mondelez trended slightly downward. However, the chocolate maker said that a bid of at least $125 per share was required to start any discussions.

    "And we can confirm our understanding that Mondelez is no longer pursuing a combination with Hershey".

    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.

    Founded in 1984 by Milton Hershey, the Hershey Company is an iconic American brand controlled by a family trust which overseas charitable funds.

    Later, Pennsylvania's attorney general said it reached an agreement with the trust that involved five board members leaving, and limiting compensation. Mondelez was reportedly willing to go as high as $115, but Hershey wouldn't budge on its asking price.

    Hershey Trust Co.is in the midst of reconstitution of its board of directors after they were alleged for profligacy, disregard for term limits, and self-dealing.

    "The Commission's investigation concluded that Ireland granted illegal tax benefits to Apple, which enabled it to pay substantially less tax than other businesses over many years", competition commissioner Margrethe Vestager said in a statement Tuesday.

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