Key Developments: The Hershey Company (HSY)
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9 Feb 2010
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Latest Key Developments
The Hershey Company Reaffirms FY 2010 Guidance; Declares Dividend
The Hershey Company reaffirmed its fiscal 2010 guidance and expects net sales growth to be within 3%-5% and adjusted earnings per share-diluted of 6%-8%. The Company reported EPS of $1.90 on revenues of $5.298 billion in fiscal 2009. According to Reuters Estimates, analysts were expecting the Company to report revenues of $5.49 billion for fiscal 2010. The Company also announced that it has declared dividend of $0.32 on the Common Stock, an increase of $0.0225 per share. In addition, the Board declared a dividend of $0.29 on the Class B Common Stock, an increase of $0.0222 per share. The dividends are payable March 15, 2010, to stockholders of record February 25, 2010.
The Hershey Company Not To Make Offer For Cadbury Plc
The Hershey Company announced that further to its announcement on November 18, 2009 and the statement by the Panel Executive on January 19, 2010, The Hershey Company does not intend to make an offer for Cadbury Plc. For the purposes of Rule 2.8 of the City Code on Takeovers and Mergers (the Code), Hershey reserves the right to announce or participate in an offer or possible offer for Cadbury and/or to take any other action which would otherwise be restricted under Rule 2.8 of the City Code within 6 months of the date of this announcement: ) with the agreement or recommendation of the board of directors of Cadbury should the final offer made by Kraft Foods on January 19, 2010 not become or be declared wholly unconditional; or (ii) following an announcement of an offer by or on behalf of a third party for Cadbury; or (iii) following an announcement by or on behalf of Cadbury of a 'whitewash' proposal or a reverse takeover (in each case as defined in the Code); or (iv) if there is a material change of circumstances.
The Hershey Company Not To Make Counterbid For Cadbury Plc-Reuters
Reuters reported that according to the Financial Times, The Hershey Company as decided not to launch a counterbid for Cadbury Plc following a unanimous vote by its Board late on January 21, 2009.
The Hershey Co. Works On Solo Bid For Cadbury plc-AP
The Associated Press reported that The Hershey Co. is assembling a bid to acquire Cadbury PLC without the help of Ferrero International, a person familiar with Hershey's plans said. Meanwhile, the company that bid first, Kraft, continued to defend its offer. Hershey has been working on two parallel bids for Cadbury, one with Ferrero and one on its own. But Ferrero reportedly has withdrawn. Hershey is still crafting its own potential bid, one designed to top the $16.5 billion hostile offer from Kraft Foods Inc., the person familiar with Hershey said. The person said Hershey hoped to avoid a bidding war by waiting until Cadbury's shareholders make a decision on Kraft's bid. Kraft has until February 2 to win support from a majority of shareholders. Kraft said last week that it had received acceptance from holders of 1.5% of Cadbury shares to date. Kraft's deadline to increase its bid is January 19. Cadbury has staunchly opposed a Kraft takeover. Cadbury again urged shareholders to vote against the deal and criticized Kraft's business model. Kraft may also be setting the stage for a graceful exit from bidding for Cadbury.
Ferrero International SA Not Interested In Joining Takeover Battle With The Hershey Co. For Cadbury plc-AP
The Associated Press reported that Ferrero International SA reportedly is not interested in bidding for Cadbury PLC, which is the target of a hostile bid by Kraft Foods Inc. The business daily il Sole 24 Ore reported that Ferrero decided after two days of talks with The Hershey Co. not to launch a joint counteroffer. It cited unidentified sources close to Ferrero. Ferrero had said in November that it was considering a possible offer with The Hershey Co. The status of Hershey's interest was unclear.
Ferrero SpA Working On $4.5 Billion Syndicated Loan For Possible Joint Bid With The Hershey Company For Cadbury plc-DJ
Dow Jones reported that Italian chocolate maker Ferrero SpA is in talks with banks to line up a syndicated loan of about $4.5 billion for its possible joint bid with The Hershey Co. for Cadbury plc, Italy's Il Messaggero newspaper reported, without citing its source. Mediobanca SpA, a Ferrero adviser, has contacted other banks with the aim of getting four or five of them to lend up to $1 billion each, the newspaper said.
Cadbury plc Talks To The Hershey Co., Others For Rival Bid-Reuters
Reuters reported that members of Cadbury plc's board have been talking with counterparts at The Hershey Co. as expectations fade for a significantly higher bid from Kraft Foods Inc. Cadbury plc is not only seeking a higher price than Kraft's $16.8 billion (GBP10.5 billion) hostile offer, but also a merger partner that would let Cadbury plc have some say in a combined company, two sources familiar with the discussions told Reuters.
Cadbury plc And The Hershey Company Hold Talks About Friendly Bid-DJ
Dow Jones reported that Cadbury plc and The Hershey Company have held private talks about plans for the U.S. confectionary giant to launch a non-hostile bid that would be recommended by the management and board, The Sunday Telegraph reported, citing unidentified market sources. With 24 hours to go before Cadbury plc' s publishes its defense document, market sources have confirmed The Hershey Company is still looking at launching a bid but doesn't want to enter a hostile auction battle with Kraft Foods Inc., according to the report. Separately, The Observer newspaper Sunday reported that a rift has opened up between The Hershey Company's management and the Hershey Trust, the philanthropic body that controls the confectioner, over whether to trump the GBP10 billion hostile bid for Cadbury plc tabled by Kraft. The trust, which owns a third of The Hershey Company's stock but accounts for 80% of voting rights, is pressing management to go ahead with an offer in talks expected to carry on through the weekend, according to the report.
The Hershey Company And Trust Near Cadbury plc Decision-WSJ
The Wall Street Journal reported that The Hershey Co. and the philanthropic trust that controls it are nearing a final decision on whether to bid on Cadbury plc, said several people familiar with the matter. The two sides, The Hershey Co. management and the trust's board are tilting toward making a bid but haven't made a final decision, these people said. A key tension between The Hershey Co. and the trust is whether to sacrifice The Hershey Co.'s investment-grade credit rating in order to challenge Kraft Foods Inc.'s existing $16.5 billion bid for Cadbury plc, the people said. Talks with third parties, such as Italian chocolate giant Ferrero SpA, have been put on hold, and there have been no recent talks with Swiss food giant Nestlé SA, the people added. The Hershey Co.'s management and the trust are holding threshold meetings this week to gauge their ability to complete a transaction. A bid under the likeliest scenario would require Hershey to take on about $10 billion in debt, issuing billions of dollars in new Hershey shares and accepting cash infusions from wealthy investors in exchange for equity in a combined The Hershey Co. and Cadbury plc, the people said.
The Hershey Company's Trust Pushes For Cadbury plc Bid-Reuters
Reuters reported that, according to the Wall Street Journal, the charitable trust that controls The Hershey Co. is pushing the Company to launch a rival $17 billion bid for Cadbury Plc, citing people familiar with the matter. That would be bigger and have more cash than the offer Kraft Foods Inc has made, the newspaper said. A bid, if one emerges, would not be ready for at least two weeks and the terms of a possible offer are in flux, the paper said. One possible scenario, the paper said, would include at least $10 billion in cash from Hershey, plus $2 billion in new Hershey shares. A third component would be another $3 to $5 billion in cash from rich investors in exchange for equity in Hershey, the paper said, citing those people.
Cadbury shareholders approve Kraft takeover
LONDON/CHICAGO (Reuters) - Kraft Foods won control of Cadbury on Tuesday as holders of almost 72 percent of the chocolatier's stock accepted the 11.7 billion pound takeover that will create the world's biggest confectioner. | Video
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