The Wall Street Journal: Hershey shares plunge as Mondelez drops its $23 billion purchase bid
Mondelez International Inc. has ended talks regarding a possible acquisition of Hershey Co., saying it determined there was “no actionable path forward” amid recent shareholder developments at the chocolate maker.
Hershey HSY, +0.71% shares fell 11% to $ 98.93 in recent after-hours trading, while Mondelez MDLZ, -0.05% rose 3.6% to $ 44.60.
Mondelez made a roughly $ 23 billion bid for Hershey in June in an effort to create the world’s largest candy maker, an offer Hershey’s board unanimously rejected. The maker of Oreo cookies and Cadbury chocolate bars had proposed a tie-up at $ 107 a share, half in cash and half in stock.
Deerfield, Ill., -based Mondelez’s offer was made as sales at both companies have been under pressure.
Any potential takeover of Hershey, known for its namesake Kisses and chocolate bars, would face obstacles. A deal would require the approval of the Hershey Trust, its largest shareholder, which has opposed a sale in the past.
An expanded version of this report appears on WSJ.com.