A Rich Aroma From The Twinkies Shop

Following Unilever's agreement to buy Bestfoods for $24.3 billion, the rush is on to pick the next acquisition target in foods. That has attracted heavy buying in Interstate Bakeries (IBC), trading at 15 a share. "It is one of the cheapest stocks in foods--based on its brand products and potential as a takeover target," says one New York money manager, who has been accumulating shares. Interstate, once one of the darlings of Wall Street, is the largest wholesale baker in the U.S., supplying baked goods to supermarkets and convenience stores. Its brands include Wonder bread, as well as Hostess and Dolly Madison cakes.

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