Hershey Shares Up Amid Speculation On Indus Consolidation
September 09 2009 - 12:33PM
Dow Jones News
Hershey Co. (HSY) shares rose 5% Wedneday amid continued
speculation about the company's future in the midst of
consolidation in the global candy industry.
Hershey has long been seen as a potential acquisition target,
with Cadbury PLC (CBY) often named as a potential acquirer in the
past. Hershey again received attention from investors this week
after Kraft Foods Inc. (KFT) made an unsolicited bid for Cadbury,
which Cadbury has rebuffed.
Hershey, however, is controlled by the Hershey Trust, a
charitable trust that has steadily maintained that it will not
consider deals that would require Hershey to give up its
independence.
After Kraft's bid, there has been other speculation suggesting
that Hershey might want to respond in some way. However, given
Hershey's size analysts have said it would be difficult for the
company to finance a bid for Cadbury on its own, raising questions
about whether it might choose to find a partner. A Hershey
spokesman couldn't immediately be reached.
Hershey shares were recently up 5% to 41.17.
-Anjali Cordeiro; Dow Jones Newswires; 212-416-2200;
anjali.cordeiro@dowjones.com