Hershey Trust Co., the controlling shareholder in the Hershey confectionery group, has put a dampener on speculation about a possible merger of Hershey and Cadbury Schweppes, by saying it has no intention to relinquish voting control of the company.
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“The trust has always maintained that it has absolutely no interest in losing control,” Hershey Trust chairman LeRoy Zimmerman was quoted as saying by Reuters. “We have 78% voting control, and we have no interest in losing that.”
Zimmerman added that the trust has “absolute confidence” in Hershey’s management, including CEO Richard Lenny, and its plans to cut costs and boost market share. In response to a 10% fall in fourth-quarter profit to US$153.6m, the company announced plans last month to cut 1,500 jobs, representing 11% of its workforce, and rationalise production.
Zimmerman said that the merger talk was only “speculation”, declining to discuss any possible deals.
Talk of a merger between Hershey and Cadbury was sparked last month after it was announced that Cadbury Schweppes was planning to de-merge.
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By GlobalDataThe Hershey Trust Co. exercises voting rights on behalf of the Milton Hershey School Trust, for which it has been as trustee since 1909.
