As Fisher moved to the courts, he also worked behind-the-scenes in the state legislature to make it more difficult for the trust to sell Hershey Foods. The reason for Fisher's involvement is found in the state's gubernatorial race, where he, the Republican candidate, trails by 12 points. Through this efforts, he is hoping to seek votes of central Pennsylvania and the Hershey community.
A week after the petition was filed, Judge Warren Morgan asked Hershey Foods shareholders to respond to the attorney general's petition and explain why the sale should not be subject to court's approval. Only a week later, the attorney general filed another petition requesting an injunction against the trust's board, fearing that a deal may be reached before the court could determine whether it has the jurisdiction to intervene. The trust, in response, claimed that selling the company was within its authority.
In a surprise move last week, after several days of testimonies, Judge Morgan granted the injunction requested by the attorney general and halted the trust from proceeding with the planned auction of the company until the court can determine whether it must authorize any sale. The judge also suggested that the alumni association, which has been looking to get involved, may have standing in the case. The case is now in the state appeals court, due to the trust's appeal. Until a judgment is reached in that case, the decision on whether the alumni association can get involved has been postponed.
Through the legal issues, the fear is that the $10 billion-plus sale of Hershey Foods may be put in jeopardy. Nestlé's CEO has publicly announced that it would not pay $12 billion for the company, despite rumors that they offered an aggressive price for Hershey Foods. Even as the volatility in the stock market continues and the trusts insists its lack of diversity in its portfolio poses great risk, it may not be able to find a buyer if and when the sale becomes a possibility.
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