UK confectionery and soft drinks maker Cadbury Schweppes is reported to be eying a takeover of Hershey Foods, the US chocolate giant that has put itself up for sale.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
According to the Mail on Sunday, sources claim that Cadbury will enter the bidding war for Hershey, although it will likely have to settle for just a few of Hershey’s brands, as Swiss giant Nestlé and US group Kraft Foods are more likely winners of the anticipated £7bn (US$11bn) auction.
The trust behind Hershey last week confirmed newspaper reports that it wanted to sell its stake in the group to diversify its holdings. Milton Hershey School Trust controls Hershey with 31.4% of its outstanding common shares and 76% of its voting stock.
Employees and townspeople have spoken out against the trust’s decision to sell, with many saying they were under the impression that Hershey Foods could not change hands.
The Wall Street Journal reports that Hershey Foods CEO Richard Lenny told employees last week that he disagreed with the trust’s actions and had tried to prevent them. In March, the trust asked the company’s board to explore strategic alternatives; the board came back with a proposal to buy back a significant portion of the trust’s shares at a premium. The trust rejected it, even though, Lenny said in his memo, “It would have satisfied the trust’s stated objectives of diversification of its assets.”
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataAccording to Lenny, the board then had “no choice but to proceed” with a possible sale.
