Hostess set to announce bidder for Twinkies

NEW YORK (AP) — The indestructible Twinkie appears to be one step closer to a comeback.

Hostess Brands is close to announcing that it has picked two investment firms — C. Dean Metropoulos & Co. and Apollo Global

Management — as the lead bidders for its Twinkies and other snack cakes, according to a source close to the situation who

was not authorized to comment publicly on the talks.

The joint "stalking horse" bid would set the floor for an auction process that lets competitors make better offers. A judge

would have to approve any final sale.

After years of management turmoil and

turnover, Hostess declared it was going out of business and selling its

brands in November.

The company, based in Irving, Texas, has already announced

separate lead bidders for other its brands. McKee Foods, which

makes Little Debbie snack cakes, was picked as for Drake's cakes,

which include Devil Dogs, Funny Bones and Yodels.

Flowers Foods, which makes Tastykakes and a variety of breads, was picked as the lead bidder for six of Hostess' major bread

brands, including Wonder.

United States Bakery Inc. was picked as the lead bidder for a number of smaller bread brands.

Citing sources close to the situation it did not same, the Wall Street Journal reported Tuesday that the offer for Twinkies

and other snack cakes by C. Dean Metropoulos and Apollo would be for more than $400 million. The report said that the deal

could be disclosed as early as Tuesday.

A representative for Apollo declined to comment. A representative for C. Dean Metropoulos did not return calls for comment.

Hostess has stressed in bankruptcy

proceedings that it needs to move quickly in the sale of its brands to

capitalize on the

outpouring of nostalgia and media coverage prompted by its demise.

The longer the cakes and breads are off shelves, the more

people will become accustomed to eating cakes and breads by

rivals, the company has said.