Campbell Soup May Not Be a Target for Kraft Heinz

Recent reports claim that Kraft Heinz (NASDAQ:KHC) isn’t planning to make an offer for Campbell Soup (NYSE:CPB).

Campbell Soup May Not Be a Target for Kraft Heinz

According to these reports, Kraft Heinz did take a look at Campbell Soup, but didn’t get far past that. An inside source close to the matter claims that the company wasn’t interested in a deal after looking over its financials.

Rumors have been talking about a possible deal between Campbell Soup and Kraft Heinz, but it looks like it won’t be happening. According to the rumors, KHC wasn’t interested in paying a premium for the company.

This all goes against plans from activist investor Dan Loeb for the company to sell itself. He was saying that KHC would be will to pay out $50 per share for Campbell Soup stock. That would be quite a premium on the stock, which was trading at $37.19 when the markets closed on Thursday.

Another factor to account for is that family members of Campbell Soup may not have an interest in selling the company. They control 40% of the company. In comparison, Loeb’s Third Point holds 5.7% of Campbell Soup stock, reports New York Post.

If the recent reports are true, this brings an end to months-long speculation that Kraft Heinz is considering scooping up Campbell Soup. Talk of a possible deal started up back in June before popping up again in August.

CPB stock was up slightly as of noon Friday, but only after fluctuating between decreases and increases during the morning.

As of this writing, William White did not hold a position in any of the aforementioned securities.

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