Owner of Nabisco ends pursuit of Hershey

Josh Kosman

New York Post

29th August 2016

Hershey has succeeded in giving Mondelez the big . Mondelez, owner of Oreo, Nabisco and Cadbury, said Monday after market hours that it had ended discussions with Hershey about buying the business. The pullback means Mondelez — by not growing bigger — is a likely target for 3G Capital’s Kraft Heinz Co.

bankers in the space said. Mondelez Chief Executive Irene Rosenfeld for $107 a share, considered a relatively small 10 percent premium to the stock price then. If she had succeeded, Mondelez would have become too large for Kraft Heinz to swallow.

Mondelez raised its offer last week by 7. 5 percent to $115 a share, and Hershey rejected it as still far too low, saying it was seeking at least $125, . “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.

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. Mondelez’s shares rose 2. 5 percent in trading, to $44.

10. They have been basically flat for the last 12 months. Hershey’s shares fell 11 percent in trading Monday, to $98.

93. Rosenfeld had been chairman and CEO of Mondelez predecessor Kraft since 2007, and kept those titles at Mondelez, the international side of the business, after Kraft split itself in two. Since then, Heinz has acquired Kraft, and is looking for its next target, sources said.

A charitable trust controls 81 percent of Hershey’s voting shares and funds a charitable school for disadvantaged kids. Earlier this month, the Hershey Trust, which has gone through several recent unrelated scandals, announced it was adding nine new board members by the end of next year, further complicating a potential sale..

 

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