Offer from Kraft Heinz to buy Unilever

Offer

On Friday the 17th of February the Kraft Heinz Company offered $ 143 billion dollars (€ 130 billion Euro’s) for Unilever. Unilever declined the offer, but it seems there is room for negotiations between the companies. Kraft offered a price of $ 50 a share. A 18% premium to the closing prices on Thursday. It seems that the offer consisted of a cash offer of $ 30,23 a share and a stock offer of 0.222 shares per Unilever share in the combined company. The share price of Unilever has risen by 12% on Friday after the news became public.

My thoughts

It seems that Kraft has the possibility to improve the offer until the 17th of March. I will be following this since I have 23 shares of Unilever in my portfolio. My preference would actually be to just keep the shares. On the other hand, this is a nice opportunity to sell them for a great price and to receive some Kraft shares in addition. Well, the outcome is not up to me, so we will see what happens.

 

3 thoughts on “Offer from Kraft Heinz to buy Unilever”

    1. It is indeed. But both parties already agreed that they won’t talk further and no hostile takeover, so everything is back as it was.

      To be honest, I’m happy with it. I know I can make a nice amount of money when a company is sold, however I like Unilever and I believe in them long term. I don’t like Kraft Heinz.

      Besides that, Unilever is one of my only 2 European companies. I would hate to lose the stock to a US company. My European exposure is already low. Especially since I’m from Europe. I just can’t find much good stocks over here.

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