Mondelēz International, Inc.NASDAQ
Tue, Jul. 26, 5:30 PM
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Mon, Jul. 25, 8:54 AM
- Mondelez International (NASDAQ:MDLZ) is higher in early trading with a clearer path ahead of the company in its pursuit of Hershey.
- Susquehanna upgrades shares to Positive off the new developments.
- Analyst Pablo Zuanic estimates cost and top line synergies would create 25-30% upside for Mondelez if a deal is finalized. Even if the deal falls through, Zuanic reasons that Mondelez could be a target itself in the rapidly consolidating food sector.
- Previously: Hershey Trust settling with state attorney general over governance (July 22)
- MDLZ +1.11% premarket to $45.63.
Fri, Jul. 22, 5:53 PM
- The Hershey Trust (NYSE:HSY), facing a court date over governance charges, will settle with Pennsylvania's attorney general to resolve its investigation, according to Dow Jones reports.
- That action will include more resignations on its board. Several members of the Hershey Trust board have resigned over the past year, amid a takeover attempt by Mondelez (NASDAQ:MDLZ).
- The attorney general has been probing the trust -- a charitable trust that controls the fate of the Hershey Co. -- for excessive spending and letting board members overstay their terms.
- Updated 5:58 p.m.: Reuters reports that the deal will put 10-year term limits on trustees, with three trustees (Joseph Senser, Robert Cavanaugh and James Nevels) required to step down by the end of this year, and Chairwoman Velma Redmond leaving by the end of 2017 along with James Mead. Trustees' compensation will also be capped.
- Previously: The Hershey Trust may be heading to court (Jul. 14 2016)
- Previously: More disruption with the Hershey Trust (Jul. 11 2016)
Thu, Jul. 21, 1:54 PM
- The latest developments with the Hershey Trust increase the chances of Mondelez International (MDLZ -0.1%) upping its offer down the road or a new bidder such as Nestle (OTCPK:NSRGY) stepping in, observes CTFN.
- The Hershey Trust is working to settle charges from the state attorney general's office and there are signs that deal talks can progress if a Pennsylvania jobs commitment is made.
- Hershey trade at $109.14 at last check. Last month, the company rejected an offer at $107 from Mondelez.
Tue, Jul. 19, 5:42 PM
Thu, Jul. 14, 9:48 AM
- The charitable trust with a controlling interest in Hershey (HSY +0.5%) may have to go to court to face the Pennsylvania Attorney General's office over governance charges, sources tell The Wall Street Journal.
- The court battle would be a major distraction just as Mondelez International (MDLZ +0.4%) dials up pressure on a sale.
- Hershey trades right around $109 after running up to as high as $115 amid takeover talk.
Mon, Jul. 11, 2:12 PM
- A bill requiring food companies to label GMO ingredients was approved by the U.S. Senate by a 63 to 30 vote and now heads to the House of Representatives.
- The negotiated bill requires food companies to label genetically modified food by a phrase, symbol on the package, or a bar code that can be scanned by smartphones.
- The Department of agriculture still has two years to write the precise labeling rules if the House approves the bill.
- The passage of the bill is seen as a positive for the food sector as the alternative of having to adhere to state-by-state rules could create operational chaos for national sellers.
- Food stocks: SENEA, SENEB, THS, OTCPK:NCRA, CPB, MDLZ, GIS, OTCPK:NSRGY, FLO, CAG, DF, SJM,DF, ANFI, JJSF, WWAV, UL, OTCQX:DANOY, OTCPK:PLATF, POST, K, PEP, DMND, PF, HAIN, KO, BETR, KHC, WILC, PPC, PF, LWAY, HRL, TSN, DTEA, SAFM, BRID.
Mon, Jul. 11, 1:41 PM
- A board member of the trust that holds a controlling stake in Hershey (HSY) has resigned following the company's rejection of an offer from Mondelez International (MDLZ -0.5%), according to Reuters.
- Joan Steel's resignation is the fourth from the Hershey Trust board since last year amid a battle with the Pennsylvania Attorney General's office over its corporate structure.
Wed, Jul. 6, 7:41 AM
- Susquehanna analyst Pablo Zuanic thinks a number of political challenges stand in the way of Mondelez International (NASDAQ:MDLZ) acquiring Hershey (NYSE:HSY).
- The controlling Hershey Trust (81.5% of voting stock) would need the backing of the Pennsylvania Attorney General, governor, and legislature during an election year in the state.
- Hershey closed at $110.55 yesterday after trading as high as $117.79 after the Mondelez talk ignited last week.
- Hershey rejected the first offer from Mondelez.
Mon, Jul. 4, 6:02 AM
- While Hershey's (NYSE:HSY) board of directors unanimously rejected Mondelez's (NASDAQ:MDLZ) $23B bid on Thursday, its once impenetrable defenses are now looking weaker, Reuters reports.
- The Hershey Trust (which holds 81% of the company's voting stock) is under investigation and the Pennsylvania AG's office (which has say in any change in Hershey's ownership) is probing how much it spends and how long its directors have served for.
- Given the upheaval at the trust and the potential for three new board members, some analysts feel there is a chance the trust could be more open to a sale of the confectioner in the future.
Thu, Jun. 30, 2:31 PM
- Hershey (NYSE:HSY) says it has rejected the takeover bid from Mondelez (NASDAQ:MDLZ), with a unanimous vote.
- The company said it got a nonbinding indication of interest for a cash-and-stock deal totaling $107/share of Hershey common stock, along with nonmonetary considerations.
- Hershey says it carefully reviewed the indication of interest, the board uninamously rejected it, and that it determined it provided "no basis for further discussion between Mondelez and the company."
- Shares of Hershey still halted. MDLZ is up 4.2%.
- Updated 2:37 p.m.: Hershey has resumed trading, down slightly from its all-time high of $117.79 set earlier but still up 13.5% on the day.
- Previously: Hershey rises 19% on report of blockbuster buyout offer from Mondelez (Jun. 30 2016)
- Previously: Hershey jumps 7.6% on report of takeout bid by Mondelez (Jun. 30 2016)
Thu, Jun. 30, 10:54 AM
- Hershey (NYSE:HSY) is now up 19.4% after reports of a buyout offer by food giant Mondelez (MDLZ +1.8%).
- Terms of a deal aren't known, but Hershey is worth $21B and Mondelez nearly $70B, and the combination would unite a well-known American candy brand with the maker of Cadbury chocolates.
- Any deal depends on the approval of the Hershey Trust (holders of 81% of its votes), which has opposed selling in the past.
- Mondelez is trying to make a compelling case, though, promising to relocate its chocolate HQ to Hershey, Pa., and rename itself Hershey.
- Updated 12:29 p.m.: Hershey shares halted again for news.
Thu, Jun. 30, 10:36 AM
- Mondelez (NASDAQ:MDLZ), the food giant that had been carved out of Kraft Foods, has made a takeover bid for Hershey (NYSE:HSY), The Wall Street Journal reports.
- Hershey shares are up 7.6% in response.
- MDLZ is up 1.4% today.
- Updated 10:39 a.m.: Coming off a halt, Hershey is now up 17.5% to $114.09.
- Updated 10:45 a.m.: Hershey halted again, up 21.3%.
- Developing story ...
Mon, Jun. 27, 6:23 PM
- A lawsuit filed by options and future traders charging Kraft Heinz (KHC -0.1%) and Mondelez (MDLZ -2.1%) with price rigging will be allowed to proceed following a federal judge's ruling.
- The traders say the food giants illegally manipulated the price of wheat at their expense. At issue is a large late 2011 purchase of wheat futures that the plaintiffs say violates Sherman antitrust law and the Commodity Exchange Act.
- That charge moves forward, though a related claim that the two companies ran "wash trades" for a decade to hide manipulation was dismissed (and can be brought again).
- The case is similar to allegations raised by the Commodity Futures Trading Commission, which had previously noted Kraft Foods bought $90M in wheat futures in December 2011 to take a dominant position in the market without ever intending to take possession of the wheat.
Fri, Jun. 24, 11:05 AM
- Among consumer stocks covered by Susquehanna, the analysts say Mondelez (MDLZ -4.3%) and Coca-Cola European Partners (CCE -5.4%), along with Sodastream (SODA -2.7%), have the greatest earnings downside from a euro and pound that have gotten, well, pounded.
- The euro is currently down 2.3% against the dollar, while the pound is down 8.5%.
- "For those seeking to buy the dip, we would prefer MDLZ over CCE," the firm says, noting that 100% of CCE's revenues are exposed to those two currencies, it faces structural risks, and Coca-Cola's 48% ownership of CCE makes it an unlikely acquisition target.
- Acquisitive companies with U.S. dollar assets could go hunting in Europe, the analysts say, pointing to likely suitor Kraft Heinz (KHC -1.8%) -- a top pick for the firm, along with TreeHouse Foods (THS -0.6%) and Molson Coors (TAP -3.3%).
- Meanwhile, the possible ascendance of UKIP leader Nigel Farage in the UK or "anything that makes a Donald Trump presidency more likely" is bad for Mexico-heavy Constellation Brands (STZ -1.2%).
Tue, Jun. 21, 12:22 PM
- Mondelēz International (MDLZ +0.3%) announces that it has renewed its global strategic partnership with Facebook, the world’s largest mobile platform. The companies will work together to leverage and innovate around consumer insights and messenger to create more meaningful mobile-first experiences between people and brands.
- “Mobile is the most profound disruption we've ever seen in business. People are living their lives on mobile. It’s changed the way we discover, experience and share. It’s also changing the advertising industry, and messaging will have an even greater impact on how brands engage with consumers than social media has. Continuing to invest in a large-scale media partnership with Facebook will help us connect our brands with our consumers while fueling growth," said Bonin Bough, Chief Media and E-Commerce Officer at Mondelēz International.
- On the consumer insights front, the company is an early partner using Facebook’s newly announced Audience Insights API, a way for brands to better understand and leverage information about their consumers to create meaningful marketing campaigns.
- On messaging, the company will work together with Facebook to experiment on the messenger platform, including the newly launched bots for messenger platform. The objective is to pilot ways for consumers to interact in real-time with the company's brands and consumer services globally through the power of messenger threads.
- Press Release