Major Stockholder Explores Hershey Sale

Hershey Foods Co. said the charitable foundation holding a controlling stake in the largest U.S. candy and chocolate maker is exploring a sale of the company.

The decision to put the company on the block comes after the Milton Hershey School Trust, which owns about a third of Hershey's stock but controls 77% of the voting power, rejected management's proposed alternatives to a sale, Hershey said.

Chief Executive Richard Lenny said the Hershey board would have preferred to keep the company independent, but will cooperate with the trust in the effort to find a buyer. The company has hired investment bankers UBS Warburg and the law firm Sullivan & Cromwell to advise it.

Hershey shares soared $15.80 to $78.30 on the New York Stock Exchange.