By Anirban Sen and Abigail Summerville
NEW YORK (Reuters) – Hostess Brands Inc, the maker of Twinkies snack cakes, is considering a sale after raising takeover interest from major snack food makers, people familiar with the matter said on Friday.
Hostess became a takeover target after the company raised prices on some of its products to boost sales, raising concerns among investors about its prospects. Before news the company was considering a sale, its shares fell 1% year-to-date, while the Nasdaq Composite Index rose 29%.
According to the sources, General Mills Inc, Mondelez International Inc, PepsiCo Inc and Hershey Co are among the companies that have expressed interest in acquiring Hostess.
According to the sources, Hostess has hired investment bank Morgan Stanley to advise on the handling of the contract negotiations. No deal is certain and Hostess may opt out of any deal, the sources added.
The sources declined to be named as the matter is confidential. Hostess declined comment, while General Mills, Mondelez, PepsiCo, Hershey and Morgan Stanley did not immediately respond to requests for comment.
(Reporting by Anirban Sen and Abigail Summerville in New York; Editing by Chris Reese)
https://finance.yahoo.com/news/exclusive-twinkies-maker-hostess-brands-184122910.html Exclusive Twinkies maker Hostess Brands considers sale amid takeover interest