Nestle Bids for Hershey
USA Today reports Nestlé is offering about $11.5 billion, or $82 a share, to buy Hershey Foods, according to people familiar with the situation. The bid appears to make the Nestlé a front-runner in the controversial race to acquire Hershey.
Philip Morris’ Kraft Foods and Britain’s Cadbury Schweppes are expected to make rival bids before a final decision is reached, which is expected within weeks. Wall Street analysts say Hershey could fetch up to $12 billion, and warn that its plants and jobs would be most vulnerable in a sale to Nestlé.
Moderator Comment: Assuming that Nestle or other company purchased Hershey Foods, what should they do with it?
The sale (or not) of Hershey is beginning to sound like
a movie of the week. According to today’s Wall Street Journal, Locals,
State Official Muster Opposition to Sale of Hersheys, Mike Fisher, the current
attorney general of Pennsylvania who also happens to be running for governor,
was one of the first (allegedly) to suggest that Hershey explore a sale. What
makes the story interesting is that Mr. Fisher’s office is now leading the public
opposition to any sale of Hershey Foods. Did we mention that Mr. Fisher is running
for governor? [George
Anderson – Moderator]