Indian workers stand in front of a signboard during the opening of the Mondelez International facility in Sri City in India. [Photo/Agencies]

Hershey Co snubbed a preliminary takeover offer from Mondelez International Inc for $107 a share in cash and stock, turning down a deal that would have created the world's largest candy company.

The offer, which would have valued the company at about $23 billion, was rejected unanimously, according to a statement on Thursday. Hershey's stock pared its earlier gains after the company released the remarks, though the shares remain near an all-time high - a sign investors are still holding out hope for a deal.

"The company's board of directors, after receiving input from the company's management and its outside financial and legal advisers, carefully evaluated the indication of interest," Hershey, which is controlled by a family trust, said in the statement. The board and management "are committed to enhancing value for all stockholders in accordance with the company's strategic plan".

The move deals a blow to Mondelez Chief Executive Officer Irene Rosenfeld, who is seeking to balance out the Oreo maker's overseas-focused business. Hershey generated almost 90 percent of its revenue in North America last year, with the majority of that coming from selling chocolate in the United States.

The combination also would have vaulted Mondelez past Mars Inc as the world's biggest confectioner, according to Euromonitor International.