After rumor, JPMorgan details why ‘difficult’ for Hershey to be bought

JPMorgan analyst Ken Goldman notes that Hershey (HSY) shares spiked higher intraday on “takeover speculation,” stating that while the firm “won’t opine on whether this speculation is valid or not,” it will remind investors that, historically, suitors for Hershey, including Wrigley, Mondelez (MDLZ), and likely others, have been rebutted. The firm, which details the history and background of prior takeover attempts and why they failed, also describes reasons why it’s “arguably difficult” for Hershey to be bought, citing a dual-class stock structure, the Hershey Trust and Pennsylvania law among the reasons. The firm has a Neutral rating on Hershey shares.