HERSHEY FOODS SELLS STAKE IN FREIA MARABOU A.S.
HERSHEY FOODS SELLS STAKE IN FREIA MARABOU A.S. HERSHEY, Pa., Oct. 27 /PRNewswire/ -- Hershey Foods Corporation
(NYSE: HSY) announced today that it has withdrawn its bid to acquire Freia Marabou a.s and will tender its 18.6 percent interest to a subsidiary of Philip Morris Companies Inc. (NYSE: MO).
The Philip Morris tender offer is conditional upon governmental approval, which is not expected for several months, during which time Hershey Foods' proceeds will earn interest. If consummated, the transaction would result in a one-time, after-tax gain of approximately $40 million at current exchange rates. "We are obviously disappointed that our bid to acquire the remaining shares of Freia Marabou was not successful," said Richard A. Zimmerman, Chairman and Chief Executive Officer, Hershey Foods Corporation. "We explored all available options in our attempt to acquire the company. In the best interests of our shareholders and the Freia Marabou employees, we believe our best course of action is to tender our shares. "We wish to express our gratitude to the employees and labor unions at Freia Marabou who supported our bid to acquire their company," Zimmerman concluded. /delval/ -0- 10/27/92 /CONTACT: Natalie Bailey, 717-534-7631, or James A. Edris (financial), 717-534-7552, both of Hershey Foods/ (HSY) CO: Hershey Foods Corporation; Freia Marabou a.s.; Philip Morris Companies Inc. ST: Pennsylvania, North Carolina IN: FOD SU: TNM
LJ -- PH011 -- 5260 10/27/92 09:52 EST
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|Date:||Oct 27, 1992|
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