HSY Hershey Company

By Liz Hoffman, Dana Mattioli, Dana Cimilluca, and David Benoit 

Mondelez International Inc. made a bid to buy 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 in cash and stock, according to people familiar with the matter.

Hershey shares surged 16% to $112.71.

Hershey had a $21 billion market value Thursday ahead of the The Wall Street Journal's 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.

Mondelez is pledging to protect jobs following a merger of the companies, locate its global chocolate headquarters in Hershey, Pa., and rename the company Hershey, according to one of the people.

Write to Liz Hoffman at liz.hoffman@wsj.com, Dana Mattioli at dana.mattioli@wsj.com, Dana Cimilluca at dana.cimilluca@wsj.com and David Benoit at david.benoit@wsj.com

(END) Dow Jones Newswires

June 30, 2016 11:50 ET (15:50 GMT)

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