Le Monde | • Updated | By
Mondelēz waives satisfy his greed to swallow the chocolate maker Hershey. The US food group, LU biscuits owner and Milka chocolates, has announced, Monday, August 29, he abandoned his competitor his proposed takeover. The operation was a bad start from the beginning after Hershey immediate refusal to yield to the advances of Mondelēz, who on June 30, had put on the table $ 22.3 billion (€ 20 billion), half cash, half in shares to take control.
“our proposal to buy Hershey reflected our conviction that unite our two iconic American companies would create a global leader in the area of snacks and confectionery, said Irene Rosenfeld, CEO of Mondelēz, in the release. After further discussions, and taking into account recent developments regarding the shareholding of Hershey, we determined that there was no possible way to reach an agreement. “
Family Trust
Hershey Kisses has the chocolates, Nestlé manufactures some brands for the market north American and Cadbury has the license in the United States
the proposal Mondelēz was postponed initially unanimously by the board of directors of Hershey, considering that was not “a basis for further discussions” . The food giant knew that the game was a difficult one due to the capital structure of the group, which has the particular Kisses chocolates, manufactures on behalf of Nestlé certain brands for the North American market as Kit Kat and has the license to manufacture and sell Cadbury chocolate in the United States. Hershey is controlled by a family trust, which owns 81% of the voting rights. Without the agreement of that structure, no operation can succeed. In 2002, the US group Wrigley had already broken teeth after being offered to buy the company for $ 12.5 billion
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the talks apparently stalled over the price. Mondelēz proposed initially 107 dollars per share, before accepting a final effort last week at $ 115. But according to a source quoted by the Wall Street Journal , which revealed the operation in June, Hershey was ready to begin talks on a basis of $ 125 per share, an additional premium of 8% compared to the last offer of Mondelēz.
from potential conflicts of interest
the OPA has also faced the problem of governance through which the group Pennsylvania. The family trust, which manages several billion dollars to finance a school for needy children created in 1905 by the founder of the chocolate maker Milton Hershey and his wife, was the subject of an investigation on potential conflicts of interest from certain directors and unfair pay. An agreement was reached in late July with Pennsylvania authorities and, according to the Wall Street Journal , Hershey needed to turn the page on these adventures before engaging in such an assignment operation.
While recognizing that Mondelēz is “disappointed” with the outcome of negotiations with Hershey, M me Rosenfeld reiterated that the group will “disciplined in [his] approach to value creation, including through acquisitions, “. The group is under pressure from two activist shareholders, attempting to influence its strategy. Nelson Peltz and his Trian fund grows to a merger with PepsiCo snacks, while William Ackman looks for a transaction with Kraft Heinz. M me Rosenfeld announced it would make a point on the group’s strategy Wednesday, September 7.
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