According to research firm Susquehanna, we may very well see a hostile Unilever take-over bid from Kraft Heinz soon, after the company recently rejected a normal bid.
Acquisition required for growth
The analysts list several reasons for their claim: Kraft Heinz has not actively acquired another company in the past six months, which gives it ample time to prepare a hostile bid. According to analysts, Kraft Heinz cannot accept a failed bid, if it seeks continued growth in the field of consumer products.
If there is a bid, analysts feel it should be worth about 175 billion euro. Its previous bid stood at 130 billion euro, but talks between both companies were quickly halted.
Unilever’s shareholders fell into one of two camps at that time: one group wanted to maintain the company’s sustainable strategy which has been its focal point for several years now and mainly targets long-term profit; the other group wanted more short-term profit. To please the latter, the board already carried out several changes, including more cost-cutting measures and a margarine division sale.