Hershey Board rejects 23 billion dollars takeover bid from Mondelez | Progresiv
Hershey Co. snubbed a preliminary takeover offer from Mondelez International Inc. for 107 dollars a share in cash and stock, turning down a deal that would have created the world’s largest candy company. 
The offer, which would have valued the company at about 23 billion dollars, was rejected unanimously, according to a statement. “The company’s board of directors, after receiving input from the company’s management and its outside financial and legal advisers, carefully evaluated the indication of interest,” Hershey said in the statement. In rejecting the bid, the board “determined that it provided no basis for further discussion between Mondelez and the company.”
The move deals a blow to Mondelez Chief Executive Officer Irene Rosenfeld, who is seeking to balance out the Oreo maker’s overseas-focused business. Hershey generated almost 90 percent of its revenue in North America last year, with the majority of that coming from selling chocolate in the U.S. The combination also would have vaulted Mondelez past Mars Inc. as the world’s biggest confectioner, according to Euromonitor International.
Mondelez, which split from Kraft Foods in 2012, was set up to focus on faster-growing emerging markets. The global slowdown hurt the company in recent years and made the U.S. market look more attractive. It also may have been a defensive move to prevent Mondelez itself from becoming a takeover target. (www.esmmagazine.com)
