Hershey Chugs 20% Higher Amid Takeover Interest From Oreo Maker Mondelez

Shares of Hershey Co HSY soared higher Thursday morning to a new 52-week high of $117.79 and was trading higher by nearly 20 percent following a report that Mondelez International Inc MDLZ presented a takeover bid.

The Wall Street Journal, citing "people familiar with the matter," stated Mondelez sent a letter to Hershey, which proposed a combination of their businesses. Terms of any acquisition offer weren't immediately made available but the price tag on a deal would be "well over" Hershey's market value of $21 billion as of Thursday morning.

However, any acquisition would be contingent on the approval of the Hershey Trust, which holds 8.4 percent of the total common stock but 81 percent of the voting power. Wall Street Journal noted the Trust has been against selling the company in the past, but Mondelez is motivated enough to see it is successful in buying the company.

Related Link: Citi Analysts Dubious Of Hershey Takeover Rumors

Hershey takeovers in the past have seen considerable trouble being approved, given job reliance by Hershey, Pennsylvania community on the company.

"If the market is defined as the broader U.S. Candy, Mint, & Gum category, a deal between two main confection players would likely generate scrutiny from the DoJ, but given that the market is moderately concentrated, there could be wriggle room for a deal," Citi's David Driscoll said on June 15, regarding a potential takeover of Hershey by Nestle

Shares of Mondelez were trading higher by more than 2 percent at $43.84 following the M&A report.