Sweeter than a Twinkie….

August 22, 2003

Americans may be fatter than ever, but the Chairman of the Board for the company that makes Twinkies and Wonder bread is looking pretty slim, at least when it comes to his stock holdings. Interstate Bakeries’ proxy statement, filed today, shows that Charles Sullivan reduced his stock holdings to 264,169 shares as of Aug. 11, compared with the 757,503 shares he owned as of July 31, 2002. But those numbers don’t match up with the Form 5s that Sullivan, who stepped down as CEO on Sept. 30, 2002, has filed over the past year. According to the 10-K, the New York Stock Exchange has been looking into how IBC executives managed to time their stock sales so well. On Feb. 11, 2002, the company warned that its earnings for 2003 would come in lower than expected Yahoo! Finance – INTERSTATE BAKERIES CORP/DE/ – form 8-K prompting the stock price to decline even more. The 10-K also disclosed that at least a half dozen different shareholder groups are suing the company over the stock sales. It’s been some pretty lean times for IBC shareholders. The stock is down more than 50 percent since last December.

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