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Reports of a Takeover Send Hershey Stock Soaring
Key Takeaways
Hershey ( HSY ) shares climbed Monday on news that snack-food giant Mondelez International ( MDLZ ), is looking at acquiring the U.S.-based chocolate company.
Mondelez is exploring a takeover , but the process is in preliminary stages and a deal may not materialize, Bloomberg reported. The story provided no financial details about a potential offer for Hershey. Hershey's market value is above $35 billion, according to Visible Alpha data.
Hershey in 2016 rejected another offer from Mondelez, which produces sweets including Cadbury chocolates and Oreo cookies as well as savory snacks like Wheat Thins and Ritz crackers.
News Sends Hershey Shares Higher
Mondelez spokeswoman Tracey Noe said the company doesn't comment on "market rumors and speculation." Hershey did not immediately respond to a request for comment.
Hershey shares were trading about 13% higher, while Mondelez shares slipped about 2%. Hershey's shares were down about 6% year-to-date before news of a potential takeover emerged Monday.
The chocolate company's stock is now up about 6% for the year. Hershey downgraded its forecast for 2024 about a month ago, citing high cocoa prices and relatively low demand for its Kisses and other treats.
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