Hershey Foods Corporation: Bitter Times in a Sweet Place

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Supplementary software

Reference no. UVA-S-F-1409

Subject category: Finance, Accounting and Control

Authors: Sean Carr (Darden School of Business, University of Virginia); Kenneth M Eades (Darden School of Business, University of Virginia); Chris Muscarella (Darden School of Business, University of Virginia); Gustavo Rodriguez (Darden School of Business, University of Virginia); Samuel Weaver (Lehigh University)

Published by: Darden Business Publishing

Published in: 2004

Format: .xls

Data source: Field research

Topics: Mergers and acquisitions; Corporate finance; Firm valuation; Corporate governance; Agency problem

Share a link: https://casecent.re/p/101403

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Abstract

This software is to accompany the case 'UVA-F-1409'. The proposed sale of Hershey Foods during the summer of 2002 captured headlines and imaginations. Six months after making its decision to explore a potential sale, the board of the Hershey Trust Company was examining two serious offers: a joint bid from Cadbury Schweppes PLC and Nestle SA and an independent bid from the Wm. Wrigley Jr Company. In essence, the board faced both an economic and a governance decision. On the economic side, the board needed to determine the value of Hershey as a stand-alone entity compared with the bids being offered. On the governance side, the board needed to decide whether selling Hershey compromised the board’s original mandate from Milton Hershey. A teaching note is available for registered faculty and faculty and student Excel spreadsheets and media supplements are available to enhance student learning.

Industry:

Food and beverage