Shares in US confectionery giant Hershey closed more than 4% up in New York yesterday (22 September) amid rumours of a possible tie-up with Nestle.
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Hershey shares reached US$42.50 on the New York Stock Exchange, a rise of 4.42%.
Hershey stock had reached as high as $44.32 after speculation that the company could sell a stake in the business to Nestle.
A report in the UK’s Daily Telegraph newspaper claimed Hershey and Nestle were in talks over a possible merger or stake sale.
The report cited anonymous markets sources who claimed Hershey had been working with investment bank JP Morgan over a deal and that Nestle had been identified as a possible buyer.
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By GlobalDataAccording to the report, one possible deal being mooted was Hershey selling a 25% stake in the business to Nestle and giving the Swiss food giant the option of buying the rest of the company in two years time.
Officials at Hershey and Nestle could not be reached for immediate comment.
The future of Hershey has long been the centre of intense speculation among industry watchers and the questions marks over the company have grown since rival candy makers Mars and Wrigley agreed to merge earlier this year.
UK confectioner Cadbury has long been mooted as the ideal partner for Hershey, although the US company’s owners, the Hershey Trust, has so far remained steadfast in its desire to retain control of the business.
