Apollo Global Management, LLC and C. Dean Metropoulos & Co. have emerged as the leading contenders to make an opening bid for most of Hostess Brands, Inc.'s cake business, said people familiar with the negotiations. The duo is vying against other suitors to bid on the bulk of the cakes business in a bankruptcy-court auction, the people said.

Hostess reportedly plans to sell its Drakes brand separately, the people said. Hurst Capital, LLLP is also in discussions about making an opening bid for Hostess's cake brands, the people said. A bidder could end up taking several plants in addition to the cake brands, said one person familiar with the discussions.