Breaking News from CNBC's Kayla Tausche: Flowers Foods Likely the Baseline Bid for Hostess Bread Brands
WHEN: TODAY, TUESDAY, JANUARY 8TH
WHERE: CNBC'S "POWER LUNCH"
Following is the unofficial transcript of breaking news from CNBC's Kayla Tausche. All references must be sourced to CNBC.
KAYLA TAUSCHE: WELCOME BACK TO POWER LUNCH I AM KAYLA TAUSCHE AT THE NEW YORK STOCK EXCHANGE WHERE I'VE BEEN FOLLOWING THE ITERATIONS OF THE HOSTESS BANKRUPTCY AUCTION. THIS WEEK I AM TOLD BY SOURCES IS WHEN WE SHOULD KNOW WHAT THE FOUR TO SIX STOCKING HORSE BIDS FOR DIFFERENT GROUPS OF HOSTESS BRANDS SHOULD LOOK LIKE AND THAT WILL BE APPROVED BY A JUDGE ON JANUARY 25TH AND THEN IT WILL BE A FEEDING FRENZY OF BIDDERS NEXT WEEK. HERE'S WHAT MY SOURCES TELL ME WE'RE LOOKING AT RIGHT NOW THOUGH THE SITUATION IS FLUID. FLOWERS FOODS LOOKS LIKE THE LIKELY STOCKING HORSE OR BASELINE BID FOR THAT AUCTION THAT COULD BE ANNOUNCED AS SOON AS THIS WEEK. IT ALSO COULD CHANGE BECAUSE THIS SITUATION IS FLUID. FLOWERS IS A PUBLICLY TRADED COMPANY BASED IN GEORGIA AND THEY HAVE A LOT OF BREAD BRANDS. WONDER BREAD, MERITA THOSE ARE SOME OF THE BRANDS THAT HOSTESS HAS. AS FAR AS GRUPO BIMBO THAT HAS BEEN ANOTHER SOURCE OF SPECULATION. I AM TOLD BY SOURCES THAT BIMBO A MEXICAN BAKERY COMPANY IS MORE INTERESTED IN SNACK CAKE SIDE OF THE BUSINESS THE TWINKIES, THE CUPCAKES, THE YODELS, ETC AND THAT'S WHERE THEIR INTEREST WILL LIKELY EMERGE. AS FOR RETAILERS WALMART AND KROGER THEY WILL LIKELY STAY ON THE SIDELINES FOR THE STOCKING HORSE PART OF THIS AUCTION AND WAIT AND PARTICIPATE IN COURT SEE WHAT THE PRICES ARE AND WHETHER IT MAKES SENSE FOR THEM TO CONTINUE.
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