This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Hostess Brands to Shut Down: Hot Trends

NEW YORK ( TheStreet) -- Popular searches on the Internet include Hostess Brands as the maker of Twinkies and Ding Dongs said it is closing for good.

Hostess said Friday that it is asking a federal bankruptcy court for permission to shut down operations. The company is making this move on the heels of an employee strike on Nov. 9, when pay cuts were enforced.

On Thursday, the company gave its employees a 5 p.m. deadline to return to work -- or it would be forced to go into liquidation. CEO Gregory Rayburn said in a statement that the company does "not have the financial resources to weather an extended national strike." The closing will result in the loss of over 18,000 jobs.

Hostess will attempt to sell its assets to the highest bidder, which means Hostess products may not be gone forever if other companies decide to purchase them and offer them among their product lines.

Reckitt Benckiser is trending as the British consumer products group has offered $1.4 billion to purchase Schiff Nutrition International (SHF), topping the offer previously made by Bayer.

Reckitt said it would offer $42 per Schiff share, handily beating Bayer's $1.2 billion, or $34 per share, offer that was made on Oct. 30. Schiff's main shareholders already agreed to the lower-priced buyout bid from Bayer.

The two companies are competing for Schiff's fast-growing and steadily profitable vitamins and nutritional supplements business.

Now, all eyes will be on Bayer to see if it responds with a counterbid, or if the action could potentially attract more potential suitors. According to its deal with Bayer, Schiff may entertain higher offers made in writing prior to Nov. 28. However, if Schiff goes with Reckitt or any other offer, it would have to pay a $22 million breakup fee to Bayer.

Schiff's top-selling brands include MegaRed for heart care, Airborne for preventing colds and Move Free for joints.

TNT Express is another popular search. The Dutch delivery group has agreed to sell its airline operations to ASL Aviation Group in an effort to protect its deal with United Parcel Service (UPS - Get Report).
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
SHF $0.00 0.00%
UPS $105.07 0.00%
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs