Traders sour on Hershey as Mondelēz appears cool to potential merger | Global News Avenue

Hershey (HSY) shares fell on Wednesday as traders absorbed news that the candy giant’s merger with Mondelēz was less likely than initially expected.

Mondelēz International (Yideliz) said on Wednesday that the company would stick to its strategy of acquiring relatively easy-to-acquire brands as part of an announcement of a stock buyback plan. The Chicago-based conglomerate Explore acquisitions Hershey’s, Bloomberg News reported earlier this week.

Hershey rejected Mondelēz’s offer, saying it was too low. Bloomberg reported Wednesday. Shares of Hershey Co., which sells Kisses and Kit Kat chocolate bars, rose double digits on Monday after an initial report from Bloomberg.

“The company remains committed to an acquisition strategy focused on complementary assets, similar to the recent acquisitions of Chipita, Clif and Ricolino,” Mondelēz said in a statement early Wednesday morning. Mondelez did not immediately respond to a request for comment Wednesday.

The news sent Hershey’s stock price down about 3% in recent trading. Mondelēz shares rose by a similar amount.

In 2016, Hershey rejected a takeover bid from Mondelēz, which sells Toblerone chocolate bars and Triscuit cookies.