I should have bought stock in Hershey - I do eat enough of their products...
From the Wall Street Journal:
Mondelez International Inc. has made a roughly $23 billion bid for chocolate giant Hershey Co. in what would be a blockbuster deal uniting two of the world’s best-known candy makers.
Mondelez, which makes Oreo cookies and Cadbury chocolate bars, recently sent a letter to Hershey proposing the tie-up at $107 a share, according to people familiar with the matter. The bid is 50% cash and 50% stock, they said.
Hershey shares surged 15% to $111.87 on The Wall Street Journal’s report.
The maker of eponymous Kisses and chocolate bars had a $21 billion market value Thursday ahead of the report. Mondelez had a $69 billion market value.
Any sort of deal would be contingent on the approval of the Hershey Trust, which holds 8.4% of the famous company’s common stock and 81% of its voting power. The Trust has been opposed to selling the company in the past, though Mondelez is prepared to go to lengths to win it over.
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Then there’s the trust, which was established by the 122-year-old company’s founder, Milton Hershey, and runs a school in Hershey for underprivileged children. The trust’s mandate extends beyond simply maximizing shareholder value.
Mr. Hershey was considered as much a philanthropist as an entrepreneur. His Mennonite background led the son of German immigrants to a belief that businesses and their leaders are morally obligated to share their wealth with society. So as he built the chocolate company, he raised a town as well, erecting a bank, a department store, churches, golf courses, a zoo and a trolley system—public accouterments that were all completed by the early 1900s. Then he and his wife, Catherine, founded a school for orphan boys, now called the Milton Hershey School. The prime beneficiary of the Hershey School Trust is the Milton Hershey School, which was set up in 1909 to serve disadvantaged students
I've been to Hershey, PA. - a great place.
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