Hershey rumors recirculate
Swiss food group Nestle and Hershey, Pa.-based Hershey are reportedly in talks involving either a merger or a stake sale, reports the Telegraph. Nestle plans to purchase 25 percent of Hershey, Pa.-based Hershey now and the remaining 75 percent within two years. Rumor on the Street is that Hershey is working with J.P. Morgan to make it happen. At a time when the confectionery industry is consolidating globally, UK-based Cadbury will be the loser, according to the newspaper. This year, Wrigley was acquired by Mars for $23 billion, pushing Cadbury from its top spot in confectionery production. Cadbury was expected to buy Hershey to establish a greater presence in the U.S., but it didn't happen. "There are takeover rumors circulating on Hershey once again,” William Lefkowitz, an options strategist at brokerage firm vFinance Investments told Reuters, “and investors are aggressively buying calls in the company on hopes that the shares will go higher."