Word: trustfulness
(lookup in dictionary)
(lookup stats)
Dates: all
Sort By: most recent first
(reverse)
Until now, the trust has steadfastly insisted it prefers to go it alone, even rejecting a $10.2 billion bid made jointly by Cadbury and Nestlé in 2002. It does, however, hold the rights to manufacture and distribute Cadbury's products in the U.S. through a 1988 licensing agreement, notes Kirk Saville, a Hershey spokesman...
Some industry experts now wonder if the Hershey Trust will rethink its stand in light of the Kraft bid. After all, if Kraft ups its ante and succeeds in acquiring Cadbury, it would create a combined company that would rival Mars in size and reduce Hershey to a distant fourth in the confectionary market with only a 4% stake, estimates Stifel Nicolaus analyst Christopher Growe...
...believe Hershey will be faced with a difficult competitive situation," says Growe, in which the larger entities could use their scale to operate more cheaply than Hershey could. "If there was ever a time for the trust to reconsider its position of maintaining control of the company, this is no doubt...
...trust insists on keeping numerical control, which is unheard of today when you have to get bigger and you have to grow," says an observer. "It's a 1930s mentality...
Hershey could also form a partnership with Cadbury, although this would require Hershey's Trust to relinquish control of the company - which Growe thinks is unlikely...