1. summary of the case
2. Question stated by number and in bold letters.
3. Narrative answers to the questions.
4. Your conclusions
5. If not mentioned in your Narrative, list any assumptions.
6. Excel Sheets or other exhibits to show financials or other additions to your write-up.
7. Adhere to the Rubric
Answer the following questions.
1. Assume that you are a member of the Hershey Trust board. To whom (or what) do you owe your fiduciary responsibility? How does the legacy of Milton S. Hershey affect your thinking as a member of the board?
2. Is diversification a valid reason to sell HFC? How would such diversification have served the Hershey School 10 years earlier, for example?
3. Based on your valuation of HFC, do you believe the company was fairly valued by the market before the announcement of the sale? Are the Nestlé–Cadbury Schweppes and Wrigley bids fair to their own shareholders (i.e., what needs to happen for these bids to create value for the bidding companies)? (Hint: Use a discount rate of 7.5% for your analysis of HFC’s value.)
4. Which, if any, bid would you vote to accept for the purchase of Hershey Foods Corporation? Is your decision primarily based on the economics of the bids or the desire to honor the legacy of Milton S. Hershey?
5. If you decided to reject both bids and not sell HFC, what will you do to achieve the diversification objective? If you decided to accept one of the bids, what (if anything) would you want to communicate to the constituents who opposed the sale?
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