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Fly News Breaks for June 30, 2016
MDLZ, HSY
Jun 30, 2016 | 15:28 EDT
RBC Capital analyst David Palmer said he views it as "extremely unlikely" that the Hershey (HSY) board and the Hershey Trust will reach a deal to sell the company to Mondelez (MDLZ) after rejecting the latter's indication of interest, though he does believe that the bid may encourage Hershey to take more aggressive cost reduction actions. However, such cost reduction potential would be bullish to Hershey at levels before the M&A speculation, but is "less compelling" at the stock's current levels, said Palmer. RBC has a Sector Perform rating on Hershey and an Outperform rating on Mondelez.