Mondelez says it’s ending talks to buy Hershey

In June, Mondelez had offered $107 a share for Hershey and reportedly had upped the bid recently to $115 a share. A representative for Hershey did not immediately respond to a request for comment Monday.

Hershey climbed during the first half hour of trade Monday, but settled into a range for the remainder of the session.

“Following additional discussions, and taking into account recent shareholder developments at Hershey, we determined that there is no actionable path forward toward an agreement”, Mondelez said in a statement, adding that executives were “disappointed”.

The Deerfield, Illinois-based Mondelez, formerly known as Kraft Foods (NasdaqGS: KRFT – news), also produces popular lines of candies, including Oreo and Chips Ahoy! cookies.

The pullback means Mondelez – by not growing bigger – is a likely target for 3G Capital’s Kraft Heinz Co., bankers in the space said. A deal would require the approval of the Hershey Trust, its largest shareholder, which has opposed a sale in the past.

Acquisition of Hershey by Mondelez had been a long shot. Hershey is now down 12.77 on 913K shares after the bell. The trust agreed on terms of a settlement with Pennsylvania’s top law-enforcement officer, which has been investigating the trust board over allegations of excessive compensation and conflicts of interest. The agreement came from an investigation into the trust’s compliance with a 2013 agreement. Visit MarketWatch.com for more information on this news. For the protection of AP and its licensors, content may not be copied, altered or redistributed in any form. Doing so may result in civil and/or criminal penalties.