LET THEM EAT KAKE: Tasty Baking In Trouble, Looking To Merge Or Sell Itself To Competitors

PHILLY.COM: Tasty Baking Co. announced today that financial problems are forcing it to explore options that could include merging with another company or selling itself. Charles P. Pizzi, president and CEO of the Philadelphia-based maker of baked goods, said preliminary financial information for the fourth quarter, which ended Dec. 25, showed an expected annualized pretax savings of about $10 million. That number had been projected to be $13 million. The company also cited the Chapter 11 bankruptcy filing Dec. 12 of the Great Atlantic & Pacific Tea Co., a major customer whose Philadelphia-area presence is best known through its Pathmark, Super Fresh, and Food Basics stores. Another reason cited for the liquidity problems was a steep rise in commodity costs. Late this morning, the stock price was down by almost 38 percent ($2.43) and was trading at $4 a share, giving it a market cap of about $35 million. MORE