Unilever rejects $143 billion Kraft offer as bid too low

[February 17, 2017]  LONDON (Reuters) - Unilever said it saw no merit in a proposed merger with U.S. food group Kraft Heinz Co after rejecting a $143 billion offer, saying it "fundamentally undervalues" the Anglo-Dutch consumer goods giant.

Bottles of Heinz tomato ketchup of U.S. food company Kraft Heinz are offered at a supermarket of Swiss retail group Coop in Zumikon, Switzerland December 13, 2016. REUTERS/Arnd Wiegmann

Unilever said it had received an offer of $50 per share, made up of $30.23 in cash and the remainder in stock in the new group, representing a premium of 18 percent.

"This fundamentally undervalues Unilever," it said on Friday. "Unilever rejected the proposal as it sees no merit, either financial or strategic, for Unilever's shareholders. Unilever does not see the basis for any further discussions."

(Reporting by Kate Holton, Editing by Paul Sandle)
 

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