NEW YORK (TheStreet) -- Shares of Hershey (HSY) were dropping 10.83% to $99.58 in pre-market trading on Tuesday after Mondelez (MDLZ) said yesterday it would no longer pursue an acquisition of the chocolate manufacturer.
After additional discussions and weighing recent shareholder developments, Mondelez said in a statement after yesterday's market close that there is "no actionable path forward" in its bid to buy the Derry Township, PA-based company.
Mondelez in June offered as much as $23 billion, or $107 per share, to purchase Hershey. The company rebuffed the proposal, saying that the starting point for discussions would need to be $125 per share.
Additionally, Hershey said the deal couldn't be made until the trust board is reconstituted, which likely won't happen until next year.
Mondelez made another offer as recently as last week of $25 billion, or $115 per share, according to the Wall Street Journal.
The East Hanover, NJ-based snack company's CEO Irene Rosenfeld had plans to create a snacking and confectionary giant that would dominate on a global scale, the Journal added.
If the companies had combined, they would have seen sales increase between 9% and 19%.
Shares of Mondelez were higher in pre-market trading on Tuesday.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
TheStreet Ratings Team rates HERSHEY CO as a Buy with a ratings score of B. This is driven by some important positives, which it believes should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks it covers. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, notable return on equity, expanding profit margins and solid stock price performance. The team feels its strengths outweigh the fact that the company has had generally high debt management risk by most measures that it evaluated.
You can view the full analysis from the report here: HSY