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Hershey sale blocked
Pennsylvania judge keeps maker of Kit Kat, Almond Joy and Milk Duds from auctioning itself off.
September 4, 2002: 3:52 PM EDT

NEW YORK (CNN/Money) - A Pennsylvania judge has imposed an injunction against Hershey Foods from selling itself in a victory for the state attorney general trying to block the sale.

The trust that controls Hershey Foods said it will appeal the injunction that could stop the maker of Kit Kat, Almond Joy and Milk Duds from auctioning itself off.

Dauphin County Orphans Court Judge Warren Morgan granted the injunction Wednesday to stop the sale process. The order does not preclude a sale and lasts only until Morgan reviews the merits of the issue.

The Pennsylvania attorney general, Mike Fisher, is worried that a sale of Hershey will lead to job cuts at the company, a big employer in the central Pennsylvania town that bears the Hershey name. Fisher wanted the courts and state lawmakers to have time to consider the issues he raised.

"I am pleased the judge has stopped the sale to give us a chance to raise these issues," Fisher said in a statement. "We need to step back and take a hard look at how a sale of Hershey Foods would affect the Hershey community. There is no reason for the trust and its board to rush out and sell this company without allowing me to represent the public's interest and allowing the court to determine how a sale could hurt this community."

Shares of Hershey (HSY: down $2.94 to $72.66, Research, Estimates) slipped almost 4 percent Wednesday afternoon.

Hershey Trust Co. controls 31 percent of Hershey Foods stock and 77 percent of the Hershey Foods voting stock.

"The trustees are disappointed with the P.A. decision and they plan to appeal," said Rick Kelly, a spokesman for the trust.

Nestle, the Swiss food company, is rumored to be interested in buying Hershey, which brought in $1.8 billion in sales during the first six months of the year. But Nestle last week dampened speculation that it would bid as much as $12 billion for Hershey, Reuters said.  Top of page




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Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2012 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2012 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2012. All rights reserved. Most stock quote data provided by BATS.