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March 6, 2013

Bakers union opposes Flowers' Hostess bid

The bakers union representing former Hostess workers — including about 370 in Maine — says it objects to the planned sale of the bankrupt company's assets to the Georgia-based Flowers Foods Inc.

The Portland Press Herald reported that union officials are taking issue with Flowers' $360 million bid for 20 Hostess bakeries, including one in Biddeford, and other assets because the bid includes no assurances that former employees would be protected.

On a related note, the paper reported that the U.S. attorney in New York City on March 1 objected to the planned Flowers deal and a separate $31.9 million deal to sell some assets to Mexico's Grupo Bimbo because the buyers would be released from certain liabilities and obligations to comply with environmental laws.

The company will ask the U.S. Bankruptcy Court for the Southern District of New York to approve those transactions at a hearing on March 19.

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