(Reuters) -WK Kellogg's shares soared 50% in premarket trading on Thursday after a source told Reuters the Italian candy maker behind Ferrero Rocher is nearing a deal to buy the firm, uniting two of the world's most recognizable consumer food companies.

Shares of the Battle Creek, Michigan-based company hit $26.75, their highest level since the firm - which makes the popular Fruit Loops and Frosted Flakes - was spun off from Kellogg Company in 2023.

The Wall Street Journal was the first to report, after market closed on Wednesday, that Ferrero could finalize the roughly $3 billion deal as soon as this week.

Kellogg's, which is valued at $2.31 billion, lowered its annual organic sales and core profit forecasts in May on the back of subdued consumer spending.