An offer by giant US food and beverage company Kraft Heinz to merge with Unilever was snubbed because it “fundamentally undervalues” its Dutch rival, Unilever said Friday, February 17.
This file photo illustration taken on March 24, 2015 shows Kraft and Heinz products in Chicago, Illinois. Kraft Heinz said on February 17, 2017 it had made an offer to Dutch giant Unilever to merge both companies, creating a leading consumer goods company, but was rejected. The US company would nevertheless work towards a deal to combine both groups, it said in a statement filed with the London Stock Exchange. (SCOTT OLSON/GETTY IMAGES NORTH AMERICA/AFP) | Manila Bulletin
The Rotterdam-based group said the Kraft offer valued Unilever at around $143 billion, representing an 18% premium over the share price at the close on Thursday.
“This fundamentally undervalues Unilever,” it said in a statement, adding it had “no merit, either financial or strategic, for Unilever’s shareholders. Unilever does not see the basis for any further discussions.”
But investors still massively bought into Unilever shares, which are quoted in London, pushing them over 12 percent higher.