Kraft has withdrawn its proposal for a $143 billion merger with larger rival Unilever, raising questions about whether the U.S. food giant will turn its focus to another target. Jo Webster reports.
Separating as friends. Kraft withdrawing its proposal for a 143 billion dollar merger with larger rival Unilever on Sunday. The announcement ending what could have been the third-biggest takeover in history. A joint statement saying Kraft has "the utmost respect for the culture, strategy and leadership of Unilever". According to Reuters sources, Kraft was forced to pull out after the premature public disclosure of its surprise bid. The U.S. food group was forced to reveal its offer on Friday to comply with Britain's takeover regulations, after rumours of its approach to circulated among stock traders. That left the acquisition machine scrambling to come up with an appetizing message for shareholders, the press, Unilever's rank and file, and the British and Dutch leaders. Analysts and investors are now questioning whether Kraft might pursue another big-buy as a back-up plan.