Hostess Brands jumps on report of takeover interest
Justin Sullivan/Getty Images News
Hostess Brands (NASDAQ:TWNK) soared 27% after a report that the Twinkies maker is exploring a sale after takeover interest.
General Mills (GIS), Mondelez (MDLZ), and PepsiCo (PEP) are among the companies that have expressed interest, according to a Reuters report on Friday, which cited people familiar with the matter.
Hostess (TWNK), known for its Twinkies and Ding Dong brands, has hired Morgan Stanley to handle deal negotiations, according to Reuters. There's no guarantee that a sale will occur. Hostess has a market cap of $2.9 billion.
Hostess (TWNK) declined comment to Reuters.
Hostess (TWNK) shares had dropped 1.1% year-to-date through Thursday, while Mondelez (MDLZ) rose 6.3% over the same period. Shares of General Mills (GIS) have dropped 19% this year, while PepsiCo (PEP) declined 1.9%.
The Twinkies maker has had a bit of a checkered past, twice filing for bankruptcy, before it was acquired for $410 million by private equity firm Apollo Global (APO) and C. Dean Metropoulos in 2014. Hostess Brands came back to the public market in November 2016 through a SPAC deal and the shares have gained 93% since then through Thursday. 
Hostess (TWNK) short interest is 2.9%.

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