OTHER NEWS - Sept. 30, 1992

Hershey, Kraft Battle for Candy Firm: A billion-dollar battle for Norway’s largest candy maker escalated as Hershey Foods joined forces with a Norwegian conglomerate to combat a bid by Kraft General Foods. Kraft has offered $1.5 billion for Freia Marabou. Hershey, believing that Norway’s Labor government would be more likely to approve a takeover involving a Norwegian company, contacted Orkla about a counteroffer. Freia, Scandinavia’s leading chocolate and snack food maker, is 41% owned by Norsk Hydro and 18.5% by Pennsylvania-based Hershey. Hershey had bid for Norsk Hydro’s stake, but its offer was rejected in favor of Kraft’s. The battle will sharpen Oct. 9, when Freia stockholders vote on the Kraft offer. Kraft, a unit of Philip Morris, needs two-thirds of the stockholders to back its offer.