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WTVC NewsChannel 9 :: News - Local News

McKee is High Bidder for Drake's Snack Cakes

Hostess Brands Inc. today announced that the stalking horse bid submitted by McKee Foods for the Drake’s snack cake brand will be the bid presented for approval to the U.S. Bankruptcy Court as no other qualified bids were received for those assets.

“We know that Drake’s Cakes are unique baked goods that have a loyal following,” said Mike McKee, president and CEO. “McKee Foods is a family-owned bakery, similar to how Drake’s was established as a family bakery 125 years ago. We have generations of experience in baking, and we will strive to bake the Drake’s cakes, not just for taste and quality, but also to deliver on the memories of the loyal Drake’s fans.”

McKee Foods has agreed to pay $27.5 million for the Drake’s brand and certain equipment. Drake’s products include Ring Dings, Yodels, Devil Dogs, Yankee Doodles, Sunny Doodles and Drake’s Coffee Cake. Hostess will ask the U.S. Bankruptcy Court for the Southern District of New York to approve the transaction at a hearing on Tuesday, April 9. No part of the sale will be final until this approval is granted.
McKee is High Bidder for Drake's Snack Cakes

Thursday, March 14 2013, 05:12 PM EDT

More Business News

Last Update on October 30, 2014 17:28 GMT

ECONOMY-GDP

WASHINGTON (AP) -- The U.S. economy grew at a solid annual rate of 3.5 percent in the July-September quarter, propelled by solid gains in business investment, export sales and the biggest jump in military spending in five years.

The Commerce Department says that the third quarter result followed a 4.6 percent rebound in the second quarter. The economy shrank at a 2.1 percent rate in the first three months of the year due to a harsh winter.

The report was the first of three estimates of the gross domestic product, the economy's total output of goods and services. Economists believe the economy is maintaining momentum in the current quarter with consumer spending expected to be helped by a big fall in gas prices.

UNEMPLOYMENT BENEFITS

WASHINGTON (AP) -- The number of people seeking unemployment benefits rose slightly last week, but remained at historically low levels that signal a strengthening job market.

The Labor Department says weekly applications increased 3,000 to a seasonally adjusted 287,000. The four-week average, a less volatile measure, declined 250 to 281,000, the lowest level in more than 14 years.

Applications are a proxy for layoffs and have fallen 20 percent in the past year. The steady decline suggests that businesses are sufficiently confident in the economy to hold onto their staffs. That same confidence could lead them to step up hiring.

The economy expanded at a solid annual rate of 3.5 percent in the July-September quarter, according to a separate government report. That's healthy enough to encourage more hiring.

MORTGAGE RATES

WASHINGTON (AP) -- Average U.S. long-term mortgage rates arrested their five-week decline this week but the benchmark 30-year loan remained below 4 percent.

Mortgage company Freddie Mac says the nationwide average for a 30-year mortgage rose to 3.98 percent from 3.92 percent last week. It remained at its lowest level since June 2013. The rate stood at 4.53 percent back in January.

The average for a 15-year mortgage, a popular choice for people who are refinancing, increased to 3.13 percent from 3.08 percent.

The sustained decline in long-term rates sparked a boomlet of homeowners looking to refinance mortgages. Homeowners eager for a bargain rate fired off inquiries to lenders. Applications for "re-fi's" reached their highest level since November 2013 in the week ended Oct. 17, according to the Mortgage Bankers Association.

BABY FORMULA

WASHINGTON (AP) -- Federal regulators are suing baby food-maker Gerber for claiming that its Good Start Gentle formula can prevent or reduce allergies in children.

The Federal Trade Commission says that claim is bogus and that the New Jersey-based company misled consumers by suggesting the formula was the first to meet government approval for reducing the risk of allergies.

The FTC says it wants Gerber to remove that claim from formula labels and advertisements. The agency also wants Gerber to reimburse consumers who have bought the formula since 2011, when the claim began.

Gerber Products Co., also known as NestlT Infant Nutrition, says in a statement that it believes it has met all legal requirements about product claims.

WAL-MART-PRICE MATCH

NEW YORK (AP) -- Wal-Mart Stores Inc. is considering matching online prices from competitors like Amazon.com, raising the stakes for the holiday shopping season.

The world's largest retailer, based in Bentonville, Arkansas, has matched prices of local store competitors but hadn't followed moves by other retailers like Best Buy or Target to match prices of online rivals. It said it has been testing the strategy in certain markets and is trying to figure out whether to go ahead.

The strategy comes as Wal-Mart is trying to rev up sluggish sales in the U.S. but it could also erode profits.

A Wal-Mart spokeswoman says many store managers have matched online prices for customers on a case-by-case basis.

The move was first reported by The Wall Street Journal on Thursday.

MICROSOFT-FITNESS DATA

UNDATED (AP) -- Microsoft is looking to challenge Apple and Google with its own system for consolidating health and fitness data from various fitness gadgets and mobile apps. Microsoft is also releasing a $199 fitness band to work with this system.

As more athletes and recreationalists track their fitness, a chief frustration has been the inability to bring data from one gadget into an app made by a rival. As a result, nutrition information might reside in one place, while data on calories burned might be in another. Consolidating data gives users and health professionals a bigger picture on health.

Microsoft Health follows the launch of Apple's HealthKit in September and Google Fit earlier this week. Unlike rival systems, Microsoft Health will work with competing phones, not just those running Windows.

SPAIN-GOOGLE

MADRID (AP) -- Spain's parliament has approved new intellectual property laws that allow news publishers to charge aggregators each time they display news content in search results.

The law goes into effect Jan. 1 but does not specify how much aggregators like Google News could be charged. Spain's AEDE group of news publishers had lobbied for what is known as the "Google Tax" but has not provided specifics.

Google Inc.'s Spanish division said Thursday it was disappointed with the outcome and will work with Spanish news publishers to help them increase income.

Google last year agreed to help French news organizations increase online advertising revenue and fund digital publishing innovations to settle a dispute there over whether it should pay for news content in its search results.

CHINA-LENOVO-MOTOROLA

BEIJING (AP) -- Chinese computer maker Lenovo Group has completed its acquisition of Motorola Mobility from Google Inc. in a move aimed at becoming a global smartphone brand.

Lenovo said it completed the $2.9 billion purchase on Thursday, adding to a flurry of acquisitions and initiatives aimed at transforming the world's biggest maker of personal computers into a major player in wireless computing.

Google bought Motorola Mobility in 2012 for $12.4 billion but appeared to decide quickly the purchase was a mistake. It sold its set-top operations to Arris Group Inc. for $2.35 billion and its smartphone assets, along with some 2,000 patents, to Lenovo.

Lenovo chairman Yang Yuanqing said when the purchase was announced in January that it would help transform Lenovo into a global competitor in smartphones.

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