Kraft Heinz pursuing Unilever in takeover move

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Research analysts at Deutsche Bank AG assumed coverage on shares of The Kraft Heinz Company (NASDAQ:KHC) in a research note issued on Wednesday.

The Wall Street Journal reported that the $143-billion proposal was rejected by Unilever, and it's not certain that Kraft Heinz will make another formal proposal.

The statement says that Unilever has declined the proposal, but Kraft Heinz "look forward to working to reach agreement on the terms of a transaction".

Kraft Heinz, the worldwide food company behind favourites such as Heinz Tomato Ketchup and Philadelphia cheese, has approached consumer goods giant Unilever about a possible merger.

Unilever said the proposal was at an 18 percent premium to Thursday's closing share price.

Anglo-Dutch consumer goods firm Unilever PLC has rejected a takeover approach from U.S. food company Kraft Heinz Co, the pair confirmed on Friday.

Unilever shares surged as much as 15 percent to a record in London, valuing the maker of Hellmann's mayonnaise at more than $140 billion.




Kraft Heinz's shares were up 3.7% in premarket NY trading. (NASDAQ:LTEA) traded 5605 shares and its share price moved down -0.24% to close at $4.18. The Kraft Heinz Company has a one year low of $71.02 and a one year high of $91.30. Earlier this week, Kraft Heinz revealed that its fourth-quarter sales fell 3.7% year-on-year, resulting in a 5% drop in its share price. The stock grabbed 117 new institutional investments totaling 5,734,628 shares while 77 institutional investors sold out their entire positions totaling 5,996,332 shares.

For comparison, the largest retail or consumer deal of 2015 was H.J. Heinz's $53.1 billion acquisition of Kraft Foods.

If it goes ahead, it would be one of the biggest mergers in corporate history, second only to Vodafone's $183bn takeover of Germany's Mannesmann in 2000.

The Kraft Heinz Company disclosed in a document filed with the US Securities and Exchange Commission (SEC) that 10% Owner 3G Global Food Holdings LP has sold 2,808,371 shares of The Kraft Heinz Company (KHC) in trading session dated Sep.

As of writing, Kraft Heinz Co (NASDAQ:KHC) has a price to earnings ratio of 41.21.

"Kraft Heinz's approach demonstrates the pressure on brand owners to consolidate in the face of worldwide pressure on margins and constraints to organic growth opportunities", said Paul Hickman, an analyst at Edison Investment Research.

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