Consumer
Hershey’s Main Owner Rejects Mondelez’s Offer as Too Low
- Hershey Trust said to have turned down preliminary bid
- Mondelez then announced buyback and focus on bolt-on deals
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The main owner of US chocolate maker Hershey Co. has rejected a preliminary takeover offer from Mondelez International Inc., people familiar with the matter said, potentially ending a fresh pursuit that would’ve created a food giant with combined sales of almost $50 billion.
Hershey Trust Co., which has roughly 80% of the voting power at the company, turned down the bid as too low, said the people, who declined to be identified because discussions are private. Securing the trust’s backing is vital for any deal for Hershey Co. as it owns almost all of the company’s Class B stock.