HERSHEY, Pa. -- Hershey Co., the largest U.S. chocolate maker, rose 4.4% in New York trading after The Daily Telegraph reported that the company has been working on the possible sale of a stake to Nestle SA, said Bloomberg. The Hershey, Pa.-based company has been working with JPMorgan Chase & Co. on a deal in which Nestle, the world's largest food company, is a potential buyer, the Telegraph reported on its website, citing unidentified people.
Nestle, based in Vevey, Switzerland, may buy a 25% stake and an option to acquire the remaining 75% in two years, according to the newspaper.[image-nocss]
Nestle spokesperson Robin Tickle and Hershey spokesperson Kirk Saville declined to comment to Bloomberg.
Hershey shares jumped the most in almost six years on May 27 after an analyst said it may form a joint venture with Nestle.
Hershey said June 17 its board is evaluating "strategic alternatives" to create value after its largest shareholder, the Hershey Trust, said June 15 that it does not plan to give up control.
The chocolate maker also said it plans to increase profit by as much as 8% over the long term by promoting brands such as Hershey's Kisses and Reese's Peanut Butter Cups.
Analysts including Matt Arnold, with Edward Jones & Co. in St. Louis, have said Hershey and London-based Cadbury Plc may be forced to merge after Mars Inc. buys Wm. Wrigley Jr. Co.
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