NEW YORK - The new owners of Twinkies apparently developed a sweet tooth for Hostess snack cakes.
Apollo Global Management and Metropoulos & Co., which made a joint offer to snap up the famous cream-filled cakes, have also entered the contest to buy Drake's, which include Devil Dogs and Yodels, according to a source who requested anonymity because the sale process is private.
That poses a challenge to McKee Foods, which Hostess previously picked as the lead bidder for Drake's. Others were given a chance to make competing offers by 5 p.m. EDT Tuesday.
Apollo and Metropoulos were already selected by Hostess as the buyer for Twinkies and other cakes like Ding Dongs and Ho Hos after no competing bids were made. That sale still needs to be approved in bankruptcy court.