Hershey shares jump on Cadbury owner buyout report

Shares in US chocolate maker Hershey have jumped by more than 10% after a report that Mondelez International, which owns UK-based Cadbury, has approached the firm about a potential buyout.

A deal could create a snack food giant with combined sales of almost $50bn (£39.2bn) a year.

Both Mondelez and Hershey declined to comment on the report when contacted by BBC News.

In 2016, Hershey rejected a $23bn takeover offer from Mondelez.

The approach is still in the preliminary stages and it is not certain that talks will lead to a deal, according to Bloomberg.

Any deal would need the approval of the Hershey Trust Company, a charitable trust, that maintains voting control over the business.

Hershey is known for brands including Hershey's Kisses and Reese's Peanut Butter Cups.

As well as owning Cadbury, which it bought in 2010, Mondelez brands include Ritz crackers, Oreo biscuits and Toblerone chocolate.