Mondelez International Inc MDLZ.O , the maker of Oreo cookies and Cadbury chocolates, said it was no longer pursuing the acquisition of Hershey Co HSY.N , two months after the USA chocolate company turned down its $23 billion cash-and-stock bid.
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Hershey responded that the trust would not be able to consider an offer until it is reconstituted next year.
Shares of Mondelez, the maker of Oreo cookies and Cadbury chocolates, rose almost 4 percent in extended trading on Monday, while Hershey’s shares plunged about 12 percent. The company was created after a split from Kraft Foods, which has since gone on to combine with ketchup maker Heinz to create the Kraft Heinz Co.
Hershey spokeswoman Jennifer Sniderman said there had been additional discussions with Mondelez.
The Wall Street Journal reported Hershey last week rejected a second bid and signaled that a deal was unlikely before the end of the year. She also said that though the management is disappointed with the outcome, it will remain committed to add value to the company either by acquisitions or by building investor confidence regarding long-term performance. Wrigley Jr. wanted to buy Hershey in 2002 and again when Hershey wanted to buy Cadbury eight years later.
Rosenfeld privately said to CEO of Hershey J.P. Bilbrey a week ago, she would be willing to increase the bid to more than $115 per share.
Earlier in July a board member of the trust controlling Hershey resigned, another sign of uncertainty at the famous chocolate maker. The deal would have created the largest snacking company in the world, but Hershey has never been inclined to the offer even after turning down the cash and stock proposal back in June.
The attorney general accused the trust of misconduct for overpaying its directors. While we believe that the long-term outlook for the global snacks categories in which Mondelez participates remains robust, the company is now facing short-term headwinds from slowing emerging market economies.
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Hershey shares tanked 11% after hours in the stock market today.
