Mondelez has reportedly made an offer to buy Hershey and now the stock is spiking
Snack food giant Mondelez has made an offer to acquire Hershey, according to a Wall Street Journal report.
Following the report, shares of Hershey were up as much as 21%, to north of $117 per share. Mondelez shares were up about 1.7%.
Hershey has a market cap of about $25 billion; Mondelez has a market cap of about $68 billion.
CNBC's David Faber added that talks between the company have been going on for a few months. According to WSJ, Mondelez has pledged to protect jobs in the event of a merger, locate its headquarters in Hershey, Pennsylvania, and rename the company Hershey.
Activist investor Nelson Peltz Bill Ackman's Pershing Square both hold sizeable stakes in Mondelez. Ackman first took a $5.5 billion stake in Mondelez in August 2015, but has since sold down his share in the snack maker, unloading about 20 million shares in March.
Mondelez has long been a target of activist investors, with Peltz publicly agitating in 2013 for Pepsi to acquire Mondelez in a more than $65 billion deal.
Following this report, shares of other food companies including Kellogg (+4%), Campbell Soup (+3.6%), Hain Celestial (+2.1%), General Mills (+4.2%), and PepsiCo (+2%), were all higher.
Here's the spike in Hershey stock in morning trade on Thursday.
Google Finance
More to come ...
- A centenarian who starts her day with gentle exercise and loves walks shares 5 longevity tips, including staying single
- A couple accidentally shipped their cat in an Amazon return package. It arrived safely 6 days later, hundreds of miles away.
- FSSAI in process of collecting pan-India samples of Nestle's Cerelac baby cereals: CEO
- Unemployment among Indian youth is high, but it is transient: RBI MPC member
- Private Equity Investments
- Having an regional accent can be bad for your interviews, especially an Indian one: study
- Dirty laundry? Major clothing companies like Zara and H&M under scrutiny for allegedly fuelling deforestation in Brazil
- 5 Best places to visit near Darjeeling