Shares in US confectionery group Hershey rose by 3% on the New York Stock Exchange yesterday (22 August) after Deutsche Bank Securities said in a research note that the controlling shareholder may have changed its position on selling the company.
DB Securities said the company might consider a sale at at least US$55 a share. “We believe the trust may now be reconsidering its position on a sale,” Deutsche Bank analyst Eric Katzman said. DB currently has a “hold” rating on Hershey shares.
Hershey’s shares rose by $1.34 to close at $46.54.
However, the chairman of The Hershey Trust, which controls the company, said later in the day that the organisation was committed to maintaining its current position on ownership.
The Hershey Trust, which was established by company’s founder Milton Hershey and his wife Catherine in 1909, owns around 30% of the equity in Hershey but controls as much as 80% of the voting rights.