Hershey Co.’s (NYSE:HSY) controlling shareholder, the Hershey Trust, rejected Mondelez’s (MDLZ) preliminary offer as too low.
The philanthropic trust, which has ~80% of the voting power at the chocolate maker, rejected the Mondelez (MDLZ) offer, according to a Bloomberg report on Wednesday, which cited people familiar with the matter. CNBC’s David Faber reported the news earlier.
Hershey shares earlier fell as much as 7% on Wednesday after Mondelez (MDLZ) announced a $9 billion share repurchased authorization and said that it’s focused on bolt-on acquisitions. The shares have since pared some of the decline to 3.5% amid the latest headlines on the deal rejection.
Hershey (HSY) shares jumped 11% on Monday after Bloomberg reported that Mondelez (MDLZ) was evaluating a potential takeover of the chocolate maker. Mondelez made a preliminary approach to Hershey about a possible deal.
