NEW YORK (TheStreet) -- Shares of Hershey  (HSY - Get Report) are soaring 15.17% to $111.87 on heavy trading volume Thursday afternoon as the chocolate maker's board has rejected a takeover offer by snack-food giant Mondelez (MDLZ), the Wall Street Journal reports.

Mondelez recently sent a letter to Hershey offering $107 per share in a bid that was 50% cash and 50% stock.

Hershey has since rejected the proposal, noting that its board determined the bid provided no basis for further discussion with Mondelez, the Journal adds.

A deal would be contingent on the approval of the Hershey Trust, which owns 8.4% of the company's common stock and 81% of its voting power.

If the two companies were to reach an agreement, Mondelez would protect jobs, locate its global chocolate headquarters in Hershey, PA and rename the company Hershey, sources cited by the Journal said.

A merger of the two companies would create the world's biggest candy company by combining the industry's second- and fifth-largest companies by revenue. 

About 12.61 million shares of Hershey have been traded so far today, well above its average trading volume of roughly 1.38 million shares per day.

The stock is likely to sustain today's rally in the near term with a return to the $105 to $110 area in the months ahead, according to TheStreet's chartist Bruce Kamich. 

Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B.

Hershey's strengths such as its expanding profit margins, good cash flow from operations, notable return on equity and solid stock price performance outweigh the fact that the company has had sub par growth in net income.

You can view the full analysis from the report here: HSY

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 article's author.