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Bloomberg reports bankrupt Hostess Brands is getting initial bids for parts of its business, with McKee Foods, maker of Little Debbie snack cakes, offering $27.5 million for Drake's, which makes Devil Dogs, Ring Dings and Yodels.

At the same time, the story says, "United States Bakery Inc., also known as Franz Family Bakery, is expected to bid about the same amount for Hostess bread brands including Sweetheart, Eddy's, Standish Farms and Grandma Emilie's ... Earlier this month, Hostess chose Flowers Foods Inc to start the bidding at $390 million for its bread brands including Wonder, Butternut, Home Pride, Merita and Nature's Pride."

All of these bids are considered to be "stalking horse bids," setting the level at which bidding will begin for these Hostess business segments.

Still to be sold: Hostess's iconic Twinkies brand.
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