Kraft Heinz vowed to try to win Unilever over after the Anglo Dutch multinational turned down its bid. As Fred Katayama reports, a marriage would be the third biggest takeover in history.
Kraft Heinz says it won't walk away despite being rejected. Unilever turned down a $143 billion surprise merger offer Friday. A deal marrying Kraft's Macaroni and Cheese and Heinz ketchup with Unilever's brands like Hellmann's mayonnaise and Ben & Jerry's ice creams would be the third biggest takeover in history. But Unilever said Kraft's' $50 a share offer in cash and stock "fundamentally undervalues" the company, adding that it sees "no merit" for its shareholders and no reason for further discussions. Undaunted, Kraft said it's looking forward to "reach agreement" on the terms of a transaction. Analysts see this as a sign Kraft is open to upping the ante. HL Select UK Shares fund manager Steve Clayton said, "Kraft Heinz are attempting a massive push on the Fast Forward button ... To acquire the sheer scale of brands that Unilever represents through one-off acquisitions could take decades." Shares of both companies rose on the news.