Kraft Heinz drops Unilever takeover bid

[nitpicker]

http://www.bbc.com/news/business-39022692

Kraft Heinz drops Unilever takeover bid

By Howard Mustoe
Business reporter

3 hours ago

From the section Business

Kraft Heinz has abandoned its offer to buy Unilever, its Anglo-Dutch rival. The Marmite maker rejected the US food giant's bid on Friday, saying it saw "no merit, either financial or strategic" in Kraft's offer, worth about $143bn (£115bn). "Unilever and Kraft Heinz hold each other in high regard," the companies said in a joint statement.
(snip)

George Salmon, a Hargreaves Lansdown analyst, said shelving the deal just one business day after it was announced came as a surprise. "It was always going to be a difficult pitch to convince shareholders to relinquish their grip on Unilever, given the expectations for the company to keep churning out resilient growth in the years to come," he said.

The deal would have been one of the biggest in corporate history, combining dozens of household names. Unilever owns Ben & Jerry's ice cream, Dove soap, and Hellmann's mayonnaise, while Kraft's range includes Philadelphia cheese and Heinz baked beans.

"It would appear that Kraft Heinz have underestimated both the intrinsic value of Unilever and the challenge of acquiring control of a Dutch company whose stakeholders would have opposed such a move vociferously," said Martin Deboo, a Jefferies International analyst.
(snip)

[shenmue]

1. Good

Too many mergers.