Restorer32 Posted June 30, 2016 Share Posted June 30, 2016 Rumors in the stock market that Nestle is in talks to take over Hershey. Enough truth to it apparently that Hershey stock is going into orbit today. Link to comment Share on other sites More sharing options...
8E45E Posted June 30, 2016 Share Posted June 30, 2016 Story has it, Hershey is an unfavorable target for a takeover, due to them having exclusive rights in the USA to package and market Kit Kat, a former product of Rowntree McIntonsh. In their marketing agreement, it was indefinite, BUT, becomes nul and void if taken over by a competing company. HEY! Nestlé bought Rowntree Mcintosh in 1988!! Craig Link to comment Share on other sites More sharing options...
John_S_in_Penna Posted June 30, 2016 Share Posted June 30, 2016 (edited) Here's a little more information since you heard something: http://www.reuters.com/article/us-hershey-m-a-mondelez-intl-idUSKCN0ZG24O (1) It's not a rumor. They made an offer. (2) It's not Nestle. It's Mondelez, which is based in Illinois. (3) Even if the offer were accepted, the Hershey company name would remain. And the show is named after the town, not the candy company. (4) The stock was up about 15% in mid-afternoon. It closed up 16%. So, rumors tend to be inaccurate! And many offers go nowhere. The Wrigley company made an offer in 2002 that was rebuffed. Let's hope we're still enjoying the Hershey show field for years to come. Edited June 30, 2016 by John_S_in_Penna (see edit history) Link to comment Share on other sites More sharing options...
Restorer32 Posted June 30, 2016 Author Share Posted June 30, 2016 Actually there is no incorporated town named Hershey. Early info said Nestlé but it was in fact Mondolez. Link to comment Share on other sites More sharing options...
charlier Posted June 30, 2016 Share Posted June 30, 2016 The Hershey board of directors unanimously rejected the Mondelez takeover bid late this afternoon according to reports by a number of media outlets. Link to comment Share on other sites More sharing options...
John348 Posted July 1, 2016 Share Posted July 1, 2016 I wish I saw this thread 9 hours ago! Weather has been perfect here in the Northeast I was not paying attention to anything other then my car today Link to comment Share on other sites More sharing options...
1937hd45 Posted July 1, 2016 Share Posted July 1, 2016 You would need to talk with someone in Hershey to understand who runs Hershey, its a lot more than a candy bar. Bob Link to comment Share on other sites More sharing options...
Restorer32 Posted July 1, 2016 Author Share Posted July 1, 2016 The fact that Mondelez had been in talks with Hershey for several months tells me that Hershey is at least willing to listen to offers. I suspect Mondelez will come back with a higher offer. They pledge to change their name to Hershey and keep the headquarters and 21,000 employees in PA. Link to comment Share on other sites More sharing options...
trimacar Posted July 1, 2016 Share Posted July 1, 2016 The locals and the State of Pennsylvania seem to be pretty adamant about keeping control of the company as it now stands, interesting reading what happened to members of the Board of Trustees when they voted to sell in 2002: (from Wikipedia, like everything on the Internet, it must be true!) "On July 25, 2002, it became public knowledge that the Hershey Trust Company was seeking to sell its controlling interest in the Hershey Foods Corporation. The value of Hershey stock skyrocketed 25% with over 19 million shares trading that day. Over the following 55 days, widespread press coverage, as well as pressure from Pennsylvania Attorney General Mike Fisher, the community of Hershey, and Dauphin County Orphans' Court Senior Judge Warren G. Morgan, led to the sale being abandoned. The seven Hershey trustees who voted to sell Hershey Foods on September 17, 2002, for US$12.5 billion to the William Wrigley Jr. Company (now part of Mars Incorporated) were removed by Attorney General Fisher and Judge Morgan.[30] Ten of the 17 trustees were forced to resign and four new members who lived locally were appointed. The former Pennsylvania Attorney General, LeRoy S. Zimmerman, became the new chairman of the reconstituted Milton Hershey School Trustees. Mr. Zimmerman has publicly committed to having the Milton Hershey School Trust always retain its interest in The Hershey Company. " Link to comment Share on other sites More sharing options...
Restorer32 Posted July 1, 2016 Author Share Posted July 1, 2016 Yes, but at some point, if the bid gets high enough, the Trustees would be breaching their fiduciary responsibility by NOT selling. Hershey trust controls hundreds of millions of dollars and can't find enough ways to spend it that satisfy the terms of Milton's will. Seems a shame that a wider range of kids can't be helped with that money. I think Mondelez' promise to keep the name and keep their headquarters and employees in Hershey might make a big difference in the success or failure of their takeover attempt. If the Trustees could be convinced to move a significant part of their production to Mexico I suspect they might be convinced to sell under the right circumstances. As always, money talks. Link to comment Share on other sites More sharing options...
capngrog Posted July 1, 2016 Share Posted July 1, 2016 5 hours ago, Restorer32 said: They (Mondelez) pledge to change their name to Hershey and keep the headquarters and 21,000 employees in PA. Where have I heard this before? Dubious, I am, Grog Link to comment Share on other sites More sharing options...
John_S_in_Penna Posted July 1, 2016 Share Posted July 1, 2016 1 minute ago, capngrog said: Where have I heard this before? Dubious, I am, Grog Good point, Grog! When Pennsylvania State University bought Dickinson College's law school in Carlisle, Penna., circa 2004, they promised to keep it in Carlisle. Shortly after the acquisition was complete, they announced their intention to move it. Local outcry kept it (at least partially) in Carlisle. Link to comment Share on other sites More sharing options...
mercer09 Posted July 1, 2016 Share Posted July 1, 2016 Just heard rumor yesterday, that Hershey is giving up it's Mexico location and coming back to PA......................... so there's another rumor! Link to comment Share on other sites More sharing options...
Steve Moskowitz Posted July 1, 2016 Share Posted July 1, 2016 First of all, Hershey did not leave PA! In face they invested millions and millions of dollars in a new facility here. They have also built/remodeled new office space and continue to expand Hersheypark. Yes, they also have a plant in Mexico and elsewhere. As to the rumor it probably resulted from a proposal by another company to acquire Hershey Foods which so far has been rejected by the board. This is not the first time this has happened. Hershey is a "tasty morsel" for a merger but given the uniqueness of the Hershey business model it probably would take a beyond belief offer for the Trust to consider merging or selling. See Below: Mondelez International Inc. MDLZ -0.88 % made a roughly $23 billion bid for Hershey Co. HSY -1.36 % in an effort to create the world’s largest candy maker at a time when both companies’ sales are under pressure. Mondelez, which makes Oreo cookies and Cadbury chocolate bars, recently sent a letter to Hershey proposing a tie-up at $107 a share, half in cash and half in stock. Hershey’s board unanimously rejected the bid Thursday and said it “provided no basis for further discussion.” Link to comment Share on other sites More sharing options...
Restorer32 Posted July 1, 2016 Author Share Posted July 1, 2016 The simple fact that Hershey was willing to engage in several months' talks before the bid was rejected means that they are at least open to offers. I suspect we haven't heard the last of this story. Link to comment Share on other sites More sharing options...
old car fan Posted July 1, 2016 Share Posted July 1, 2016 Yes Sir.spot on,Big cash talks Link to comment Share on other sites More sharing options...
Dave Mellor NJ Posted July 2, 2016 Share Posted July 2, 2016 12 hours ago, capngrog said: Where have I heard this before? Dubious, I am, Grog Remember Buick promising never to import cars from China? Link to comment Share on other sites More sharing options...
46 woodie Posted July 2, 2016 Share Posted July 2, 2016 I have been attending the "Hershey" fall meet every year since 1968 and will continue to attend. When I found out that their chocolate was being produced in Mexico however, that was the end of me purchasing any chocolate from them. Perhaps we should just start calling it the AACA Fall Meet. Link to comment Share on other sites More sharing options...
cutlasguy Posted July 2, 2016 Share Posted July 2, 2016 It truly is all about money. There is no guarantee that the new owners of Hershey will keep the Fall Show where it is. We've already seen that, when Hershey moved it from the Stadium to the Giant Center and now to the Golf Course. More vendor space that way! Soon it will be just like the Grand Nationals. All over the country from year to year. Link to comment Share on other sites More sharing options...
1937hd45 Posted July 2, 2016 Share Posted July 2, 2016 Is there another week that produces more money to the Hershey area than the AACA Fall Meet? Bob Link to comment Share on other sites More sharing options...
JACK M Posted July 2, 2016 Share Posted July 2, 2016 The fact that director boards consider mergers for long periods of time means that they are doing their job for their stock holders. These contemplations may not come to fruition, but we all study possible deals on our own scales. We owe that to ourselves as a board of directors owe all considerations to their companies.. I know nothing about the corporation discussed here but I would say the board is doing their job as they are a very successful company. Link to comment Share on other sites More sharing options...
mercer09 Posted July 2, 2016 Share Posted July 2, 2016 well Steve, Hershey may not have left, but production did...................... If they pull out of Mexico and come back, then maybe there is some hope. Regarding Hershey's success- the founder would roll in his grave if he saw the city of Hershey today. He established the co for the good of the people and much has been run into the ground. there was a time, when "everyone" in Hershey was guaranteed to be employed. That is no longer the case. Link to comment Share on other sites More sharing options...
Restorer32 Posted July 2, 2016 Author Share Posted July 2, 2016 Hershey still has 21,000 employees in PA. Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now