Kraft Withdraws $143 Billion Offer for Unilever -- Update
February 19 2017 - 2:13PM
Dow Jones News
LONDON -- Kraft Heinz Co. dropped its $143-billion offer for
rival Unilever PLC, just a little more than 48 hours after making
an audacious bid to combine two of the world's biggest
packaged-food companies.
In a brief statement Sunday, Kraft said it "has amicably agreed
to withdraw its proposal."
A Kraft spokesman said the company's intention was to proceed on
a friendly basis, and that its interest was made public at "an
extremely early stage." After Unilever made clear it didn't want to
pursue a tie-up, the spokesman said, "it was best to step away
early so both companies can focus on their own independent plans to
generate value."
The U-turn is a big victory for Unilever Chief Executive Paul
Polman, who was digging in over the weekend to resist the
unsolicited offer. The deal faced steep hurdles from the start --
first among them a determination by Unilever's board and management
that the 18% premium Kraft offered to the company's value was
inadequate.
Mr. Polman was ramping up a defense, telling board members and
investors that Kraft's cost-cutting ethos could damage Unilever
brands and highlighting its lack of experience in personal-care and
household goods, according to people familiar with the matter.
(END) Dow Jones Newswires
February 19, 2017 13:58 ET (18:58 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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