By Anirban Sen and Abigail Summerville
NEW YORK (Reuters) – Hostess Brands Inc, the maker of Twinkies snack cakes, is exploring a sale after fielding takeover interest from major snack food makers, people familiar with the matter said on Friday.
Hostess became an acquisition target after it raised prices on some of its products to boost revenue, fueling investor concerns over its prospects. Prior to the news of the company exploring a sale, its shares were down 1% year-to-date, versus a 29% rise in the Nasdaq Composite Index.
General Mills Inc, Mondelez International Inc, PepsiCo Inc and Hershey Co are among the companies that have shown an interest in acquiring Hostess, the sources said.
Hostess has hired investment bank Morgan Stanley for advice on handling the deal negotiations, the sources said. No agreement is certain and Hostess may decide against any deal, the sources added.
The sources asked not to be identified because the matter is confidential. Hostess declined to 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)