According to these rumors Kraft Heinz Co may seek to takeover Colgate-Palmolive Company in a friendly bid. These rumors started earlier this month and the unwillingness to comment may mean that the two companies are indeed involved in discussions concerning a takeover.
Kraft Heinz Co’s recent acquisition interests also add credence to the takeover rumors. The company recently attempted to acquire Unilever plc (ADR) (NYSE:UL), but the offer was shot down. Unilever plc’s operations are similar to Colgate-Palmolive Company, reports Seeking Alpha.
Recent investments into Colgate-Palmolive Company may also show that a possible takeover may be in the works. Both Corvex Management’s Keith Meister and Starboard Value’s Jeff Smith started acquiring stakes in the company last quarter. If a friendly takeover isn’t possible, these two may push to replace board members to work toward one.
It is also likely that Colgate-Palmolive Company will be accepting of the takeover. Ian Cook, CEO of CL, said earlier this month that he would potentially be open to a sale of the company. He is interested in an offer of $100 per share. This is a roughly 32% premium over the stock’s closing price as of Friday.
The idea that Kraft Heinz Co wants to acquire Colgate-Palmolive Company has its merits. KHC is owned by Warren Buffett and the investor follows a strategy of acquiring companies and trimming down the workforce for more profit. Synergies between KHC and CL would make this a possibility, TheStreet.com notes.
KHC stock was down slightly and CL stock was largely unmoved as of Tuesday morning.