Cold shoulder from Unilever fails to cloud Kraft-Heinz's glad eye
Unilever rejected a surprise $143-billion takeover bid from US food company Kraft Heinz on Friday, saying it saw no reason to discuss a deal which it believed had no financial or strategic merit
But while Unilever, maker of Lipton tea and Dove soap, said the $50 per share offer undervalued it and recommended its shareholders take no action, Kraft Heinz said it looked forward to "working to reach agreement on the terms of a transaction". Analysts saw this as a sign that Kraft was open to a higher bid, although the Anglo-Dutch company said in a statement it saw no basis for further talks. Unilever shares jumped as much as 14% to a record high. They were up 13% at £37.79 in lunch-time trade on Friday, short of the offer price. A combination of the two multinationals would be the third-biggest takeover in history and the biggest acquisition yet of a UK-based firm, according to Thomson Reuters data. The Kraft Heinz approach comes as the global packaged-food industry grapples with slowing growth, new competition from upstart brands, deflation in developed markets and more health-conscious consumers. Unilever has a larger presence than some peers in emerging markets, which were on...
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