NEW YORK—Shares of Hershey Co. tumbled to kick off the week's trading after the chairman of the trust, which holds a controlling interesting in the struggling confectioner, said a sale of the company wasn't in the works.
Although rumors have swirled of a possible sale, Leroy S. Zimmerman said that wasn't on the agenda. Zimmerman made the comments in an editorial from a local newspaper in central Pennsylvania. Shares declined 6.4 percent to close at $35.87 as volume more than doubled normal trading.
Shares closed lower as the week continued, finishing at $35.15 on Tuesday when Hershey revealed plans to invest funds to market its biggest brands to boost sluggish domestic sales.
On Friday, the stock declined 65 cents to close at $33.75, down nearly 12 percent for the week.
Mentor Graphics Corp.'s stock rose $2.65, or 21.5 percent, to close at $14.98 on Tuesday in trading volume of around 10.6 million, nearly 7 times its average of 1.6 million. Electronic design software company Cadence Design Systems Inc. offered to buy Mentor for $16 per share, or about $1.45 billion, but Mentor rejected the offer and called the price insufficient.
Shares edged higher as the week continued, ending on Wednesday at $15.20, and then on Friday, the stock slipped 4 cents to $15.25, up 23.7 percent since the news broke.
Fifth Third Bancorp's stock declined on Wednesday after it said it will slash its dividend and try to raise $2 billion with a stock offering and the sale of some noncore businesses. Shares slid $3.47, or 27.3 percent, to $9.26 in trading volume of 104.3 million, over 10 times its average. The stock hit $9.23 during in the session, their lowest level in more than a decade.
On Thursday, shares set another low of $8.96, before rising slightly to close at $9.75, with trading volume still well above average. The company forecast second-quarter profit below expectations.
On Friday, shares bounced back slightly, gaining 36 cents, or 3.7 percent, to $10.11, but still finished 20.6 percent lower from Tuesday's closing price.
Carnival Corp. took the spotlight Thursday, when it reported its second-quarter profit held firm, as high fuel costs offset strong revenue growth, and shares rose $1.87, or 5.3 percent, to $36.84, after setting a 52-week low of $33.87.
Carnival also lowered its full-year profit forecast, expecting to pay $752 million more for fuel in 2008 than in 2007. On Friday, shares declined $1.37, or 3.7 percent, to $35.47.
Ford Motor Co. was the headline on Friday. Moody's Investors Service cut the outlook for the company's ratings to "Negative" from "Stable," following news that Ford will delay introducing its new F-150 pickup truck by two months and cut production further.
Ford also forecast that financial results will come in worse this year than in 2007.
Shares declined 51 cents, or 8.1 percent, to close at $5.81 in trading volume of 96.3 million, nearly twice its average.
