Hershey CEO Exit Could Mean Takeover Looms
HERSHEY, Penn. (TheStreet) -- Hershey (HSY) CEO David West left the confections maker to run Del Monte Foods, according to reports, sending the stock lower in Wednesday's session.
Operations chief John Bilbrey will replace West temporarily, and the board said it will "move quickly" to find a permanent CEO.
Investors were jittery about the executive shuffle, bidding Hershey shares 2.8% lower to close at $55.48 in Wednesday's trading session amid heavy volume. More than 4.2 million shares changed hands, compared with their average daily volume of 1.2 million.
Citi analyst David Driscoll noted that West's exit from Hershey's masthead could make the company a prime takeover target, though he estimated the probability of a sale is only around 10%, up from his estimation of 2%.
Driscoll tapped Nestle (NSRGY) or Kraft as likely bidders who may view Hershey's executive changeup as "a good opportunity" to buy.Deutsche Bank analyst Eric Katzman noted that executive changes come at an uncertain time for Hershey as the company faces soaring commodity prices for cocoa, sugar and milk -- headwinds that led it to cut costs.
Select the service that is right for you!
COMPARE ALL SERVICESAction Alerts PLUS
TRY IT FREEJim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
Product Features:
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Dividend Stock Advisor
TRY IT FREENew! $49.95/yr
Jim Cramer's protege, 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
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Stocks Under $10
TRY IT FREEDavid Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.
Product Features:
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
- Weekly roundups
Real Money
TRY IT FREE24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
Product Features:
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
Real Money Pro
TRY IT FREEAll of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
Product Features:
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Options Profits
TRY IT FREEOur options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
Product Features:
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV
