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Exclusive: Twinkies maker Hostess Brands explores sale amid takeover interest, sources say

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Exclusive: Twinkies maker Hostess Brands explores sale amid takeover interest, sources say

FILE PHOTO-Hostess Brands “Twinkies” are displayed in a store in the Manhattan borough of New York City, U.S. July 5, 2016. REUTERS/Brendan McDermidFile Photo Acquire Licensing Rights

NEW YORK, Aug 25 (Reuters) – Hostess Brands Inc (TWNK.O), the maker of Twinkies snack cakes, is exploring a sale after fielding takeover interest from major snack food makers, people familiar with the matter said on Friday.

Hostess became an acquisition target after it raised prices on some of its products to boost revenue, fueling investor concerns over its prospects. Prior to the news of the company exploring a sale, its shares were down 1% year-to-date, versus a 29% rise in the Nasdaq Composite Index.

General Mills Inc (GIS.N), Mondelez International Inc (MDLZ.O), PepsiCo Inc (PEP.O) and Hershey Co (HSY.N) are among the companies that have shown an interest in acquiring Hostess, the sources said.

Hostess has hired investment bank Morgan Stanley (MS.N) for advice on handling the deal negotiations, the sources said. No agreement is certain and Hostess may decide against any deal, the sources added.

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The sources asked not to be identified because the matter is confidential. Hostess and Hershey declined to comment, while General Mills, Mondelez, PepsiCo and Morgan Stanley did not immediately respond to requests for comment.

Hostess shares rose 26% on the news to $27.89 in Friday afternoon trading in New York, giving the company a market value of close to $4 billion. Hostess also had debt net of cash of about $900 million as of the end of June.

Based in Lenexa, Kansas, Hostess was founded in 1930 and is behind several iconic household brands, including Ho-Hos, Ding Dongs, Zingers, and Voortman cookies and wafers.

The company filed for bankruptcy twice, in 2004 and 2012, due to a combination of private equity owners saddling it with debt and failing to come up with new snacks that appealed to consumers.

Entrepreneur Dean Metropoulos and private equity firm Apollo Global Management Inc (APO.N) returned Hostess to the stock market in 2016 through a deal with a special purpose acquisition company backed by the private equity firm founded by Alec Gores.

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By the end of 2020, Hostess had revamped its portfolio and was generating revenue of over $1 billion, an important landmark in its turnaround efforts. It has managed to keep its revenue growing, sometimes by raising prices as sales volumes weakened.

Hostess reported net revenue of $352.4 million in the second quarter, up 3.5% year-on-year. Gross profit increased 11.8% to $126.0 million.

Reporting by Anirban Sen and Abigail Summerville in New York; Editing by Chris Reese and Marguerita Choy

Our Standards: The Thomson Reuters Trust Principles.

Acquire Licensing Rights, opens new tab

Anirban Sen is the Editor in Charge for U.S. M&A at Reuters in New York, where he leads the coverage of the biggest deals. After starting with Reuters in Bangalore in 2009, Anirban left in 2013 to work as a technology deals reporter in several leading business news outlets in India, including The Economic Times and Mint. Anirban rejoined Reuters in 2019 as Editor in Charge, Finance to lead a team of reporters, covering everything from investment banking to venture capital. Anirban holds a history degree from Jadavpur University and a post-graduate diploma in journalism from the Indian Institute of Journalism & New Media.
Contact:+1 (646) 705 9409

Abigail is on the M&A team and writes about consumer and retail deals. She joined Reuters in 2022 from Debtwire where she covered leveraged finance and the primary debt market for three years. Previously, her work has appeared in the Wall Street Journal, CNBC and the Boston Business Journal. She majored in business journalism at Washington and Lee University. Contact: 332-261-5948

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Memes, Jokes and Cats: South Koreans Use Parody for Political Protest

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Memes, Jokes and Cats: South Koreans Use Parody for Political Protest

As South Koreans took to the streets this month demanding the ousting of their president, some found an unexpected outlet to express their fury: jokes and satire.

They hoisted banners and flags with whimsical messages about cats, sea otters and food. They waved signs joking that President Yoon Suk Yeol’s declaration of martial law had forced them to leave the comfort of their beds. Pictures of the flags spread widely on social media.

The idea was to use humor to build solidarity against Mr. Yoon, who has vowed to fight his impeachment over his ill-fated martial law decree on Dec. 3. Some waved flags for nonexistent groups like the so-called Dumpling Association, a parody of real groups like labor unions, churches or student clubs.

Video by Yu Young Jin/The New York Times

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Photos by Weiyi Cai/The New York Times

“I just wanted to show that we were here as part of the people even if we aren’t actually a part of a civic group,” said Kim Sae-rim, 28, who waved the flag of the dumpling group at a recent protest she went to with friends. Some groups referred to other local favorites like pizza and red bean pastries.

Kwon Oh-hyouck, a veteran protester, said that he had first seen such flags emerge during demonstrations in 2016 and 2017 that ultimately resulted in the removal of President Park Geun-hye. Mr. Kwon said that satire was part of the Korean spirit of protest.

“People satirize serious situations, even when those in power come out with guns and knives,” he said. “They are not intimidated.”

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In the past month, protesters have come up with a wide range of unorthodox groupings. Some were self-proclaimed homebodies. Still others came together as people who suffered from motion sickness.

Video by Chang W. Lee/The New York Times

Photos by Weiyi Cai/The New York Times

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Video by Weiyi Cai/The New York Times

Photo by Chang W. Lee/The New York Times

Lee Kihoon, a professor of modern Korean history at Yonsei University in Seoul, said that he believed the flags at this month’s protests were an expression of the diversity of people galvanized by the president’s attempt to impose military rule.

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“They’re trying to say: ‘Even for those of us who have nothing to do with political groups, this situation is unacceptable,’” he said. “‘I’m not a member of a party or anything, but this is outrageous.’”

Some held signs ridiculing Mr. Yoon, saying that he had separated them from their pets at home and disrupted their routine of watching Korean dramas. One group called itself a union of people running behind schedule, referring to the idea that the need to protest over martial law had forced them to reschedule their appointments.

Photo by Weiyi Cai/The New York Times

Photo by Chang W. Lee/The New York Times

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And of course, there were animals, both real and fake.

Photos by Weiyi Cai/The New York Times

South Koreans have shown that protests for serious causes — like the ousting of a president — can still have an inviting, optimistic and carnival-like atmosphere.

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“I don’t know if the protesters realize it, but even though they’re angry, they haven’t gotten solemn, heavy or moralistic,” Mr. Lee said. “The flags have had an effect of softening and relaxing the tension.”

On the day that lawmakers voted to impeach Mr. Yoon, protesters who were K-pop fans brought lightsticks to rallies and danced to pop songs blasting from speakers. “Even though this is a serious day,” said Lee Jung-min, a 31-year-old fan of the band Big Bang, “we might as well enjoy it and keep spirits up.”

Video by Chang W. Lee/The New York Times

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Two US Navy pilots shot down over Red Sea in apparent 'friendly fire' incident: US military

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Two US Navy pilots shot down over Red Sea in apparent 'friendly fire' incident: US military

Two U.S. Navy pilots were shot down Sunday over the Red Sea in what appeared to be “friendly fire”, the U.S. military said.

The pilots were found alive after they ejected from their aircraft, with one suffering minor injuries.

The incident demonstrates the pervasive dangers in the Red Sea corridor amid ongoing attacks on shipping by the Iranian-backed Houthis, even as U.S. and European military coalitions patrol the area.

The U.S. military had conducted airstrikes targeting Yemen’s Houthi rebels at the time, but U.S. Central Command did not elaborate on what their mission was.

US NAVY SHIPS REPEL ATTACK FROM HOUTHIS IN GULF OF ADEN

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A fighter jet maneuvers on the deck of the USS Dwight D. Eisenhower in the Red Sea, June 11, 2024. (AP)

The military said the aircraft shot down was a two-seat F/A-18 Super Hornet fighter jet assigned to the “Red Rippers” of Strike Fighter Squadron 11 out of Naval Air Station Oceana, Virginia.

The F/A-18 shot down had just flown off the deck of the USS Harry S. Truman aircraft carrier, according to Central Command. On Dec. 15, Central Command said the Truman had entered the Mideast, but did not specify that the carrier and its battle group were in the Red Sea.

“The guided missile cruiser USS Gettysburg, which is part of the USS Harry S. Truman Carrier Strike Group, mistakenly fired on and hit the F/A-18,” Central Command said in a statement.

It is unclear how the Gettysburg had mistaked an F/A-18 for an enemy aircraft or missile, particularly since ships in a battle group are linked by radar and radio communication.

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US MILITARY CONDUCTS SUCCESSFUL AIRSTRIKES ON HOUTHI REBEL FORCES IN YEMEN

USS Gettysburg

The Ticonderoga-class guided-missile cruiser USS Gettysburg (CG 64) steams in the Mediterranean Sea, Dec. 15, 2024. (AP)

Central Command said that warships and aircraft earlier shot down multiple Houthi drones and an anti-ship cruise missile launched by the rebels. Fire from the Houthis has previously forced sailors to make decisions in seconds.

The U.S., since the Truman arrived, has ramped up its airstrikes targeting the Houthis and their missile fire into the Red Sea and the surrounding area. But an American warship group in the region may lead to additional attacks from the rebels.

On Saturday night and into Sunday, U.S. warplanes conducted airstrikes that shook Yemen’s capital of Sanaa, which the Houthis have held for a decade. Central Command said the strikes targeted a “missile storage facility” and a “command-and-control facility.”

Houthi-controlled media reported strikes in both Sanaa and around the port city of Hodeida, but did not disclose details on any casualties or damage.

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USS Harry S. Truman

Aircraft carrier USS Harry S. Truman is moored near Split, Croatia, Feb. 14, 2022. (AP)

The Houthis later acknowledged the aircraft being shot down in the Red Sea.

Since the start of the Israel-Hamas war in October of last year, the Houthis have targeted about 100 merchant vessels with missiles and drones.

The rebels say that they target ships linked to Israel, the U.S. or the U.K. to force an end to Israel’s war against Hamas in Gaza, which began after Hamas’ surprise attack against Israel on Oct. 7, 2023, although many of the ships the rebels have attacked have little or no connection to the ongoing war, including some headed for Iran.

The Houthis also have increasingly targeted Israel with drones and missiles, leading to retaliatory airstrikes from Israeli forces.

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The Associated Press contributed to this report.

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AfD party calls for big rally after Germany's Christmas market attack

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AfD party calls for big rally after Germany's Christmas market attack

Leading right-wing figures in Europe have also weighed in, criticising the German authorities for failing to take stronger preventative action.

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German far-right political party Alternative for Germany (AfD) is calling for a major rally following the attack at a Christmas market in Magdeburg which left several people dead and hundreds injured.

At a memorial site for the victims, AfD co-leader Tino Chrupalla called on Interior Minister Nancy Faeser to take stronger action to ensure the safety of the German public.

“I am now demanding answers from the interior minister: What is actually going on here in this country? What is actually happening in this country? We put up with it week after week, we put up with attacks, we put up with murders of our own people. This has to be cleared up now, and these phrases from politicians that things can’t go on like this, which I’ve heard again today, are actually upsetting,” Chrupalla told the press at the site.

Experts are now raising concerns that far-right groups could exploit the tragedy to fuel their anti-immigration rhetoric after police identified the assailant as a doctor from Saudi Arabia.

“Magdeburg is in eastern Germany where the support for the AfD is quite high. So, in elections usually, they have in the region more than one-third of the votes. So about 30% of the votes in the city, not as much as in the rural areas around,” says Matthias Quent, Professor of Sociology at Magdeburg-Stendal University of Applied Sciences.

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“The region in general, eastern Germany, is a hotspot of far-right mobilisations. And we are facing election campaigns until the federal elections in February. And so this is not just a critical time because of Christmas and the trust that gets destroyed by such an attack but, also, regarding questions of disinformation and polarisation and the spread of hate that will and could happen over these kinds of attacks now,” he added.

Leading right-wing figures in Europe have also weighed in, criticising the German authorities for failing to take stronger preventative action.

Hungarian Prime Minister Viktor Orbán drew a direct link between immigration and Friday’s deadly attack in Germany, telling a news conference on Saturday, “These phenomena have only existed in Europe since the start of the migration crisis. So there is no doubt that there is a link between the changed world in Western Europe, the migration that flows there, especially illegal migration and terrorist acts.”

However, Quent explains that this particular case becomes more complex as further details emerge on the background of the attacker.

Investigators have found that the perpetrator had tried to build connections to far-right organisations in Germany and the UK, including Germany’s far-right AfD party as well as Tommy Robinson, the founder of the far-right English Defence League.

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“So it’s a very complicated case we are facing here. And it’s not an Islamist attack. It’s quite sure, a kind of anti-Islam. More like far-right attacks than any other, if you want to search a kind of context on the political radar,” Quent says.

Identified by local media as 50-year-old Taleb A., a psychiatry and psychotherapy specialist, authorities said he had been living in Germany for two decades.

Taleb’s alleged X account is filled with tweets and retweets focusing on anti-Islam themes and criticism of the religion while sharing congratulatory notes to Muslims who left the faith.

He also described himself as a former Muslim.

He was critical of German authorities, saying they had failed to do enough to combat the “Islamism of Europe.”

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