On Thursday morning, shares of Hershey Co. (NYSE: HSY) jumped up 15.67% to $112.61 after Mondelez International Inc. (NASDAQ: MDLZ), the maker of Oreo cookies and Cadbury chocolates, announced a takeover bid for the company. At the same time, shares of Mondelez rose 1.67% to $43.69.
Mondelez didn’t disclose a bid price, but Hershey had a $21 billion market value Thursday morning, meaning a deal could value the maker of eponymous Kisses and chocolate bars at well over that. Mondelez had a $69 billion market value.
However, any sort of deal would be contingent on the approval of Hershey Trust, which holds 8.4% of the famous company’s common stock and 81% of its voting power. The Trust has been opposed to selling the company in the past, even Mondelez is prepared to go to lengths to win it over.
"The Trust ... is outwardly very committed to keeping the company independent," Bernstein analyst Alexia Howard had said in June of last year. "So it's pretty much impossible for an activist to get involved or for the company to be bought."
According to The Wall Street Journal report, Mondelez said it will protect jobs following a merger of the two companies, locate its global chocolate headquarters in Hershey, Pennsylvania, and rename the company Hershey.