Unilever plc (ADR) (NYSE:UL) stock jumped on rumors of a hostile takeover bid from Kraft Heinz Co (NASDAQ:KHC).
According to these rumors, Kraft Heinz Co may still want to acquire Unilever plc (ADR), despite the failed merger earlier this year. The rumor claims that the company may seek to offer $200 billion for UL stock, which is an increase over the original offer of $143 billion.
A report from Susquehanna analyst Pablo Zuanic says there is a 75% chance that Kraft Heinz Co will attempt a hostile takeover of Unilever plc (ADR). He notes that the six-month wait to from the previous bid will expire in August, and that may be when the hostile bid for UL stock is made.
Zuanic says that there are a couple of strong indicators that Kraft Heinz Co will make a hostile bid for Unilever plc (ADR). The first is that KHC hasn’t been made any activity in mergers or acquisitions since the failed attempt earlier this year.
The second reason for a hostile bid is that Warren Buffet, the CEO of Berkshire Hathaway Inc. (NYSE:BRK.A,BRK.B), has a $30 billion investment in Kraft Heinz Co. He likely wants to see that investment grow and may push for the hostile bid for UL stock to make it happen, reports StreetInsider.com.
Kraft Heinz Co’s original takeover offer for Unilever plc (ADR) was made back in February. While UL turned the offer down, KHC said that it was still interested in making a deal with the company.
UL stock was up slightly as of Monday morning and is up 33% year-to-date.
As of this writing, William White did not hold a position in any of the aforementioned securities.
