We See No Merit Either financial or strategic To Shareholders- Unilever

Emboldened by its 2010 hostile takeover of British food drink giant- Cadbury Schweppes for a princely $19 billion, Kraft Foods (now Heinz Kraft, following its 2015 merger with U.S Ketchup maker- Heinz) says Anglo-Dutch consumer goods giant- Unilever, the biggest firm listed in Britain, is its next game for a possible merger.
A statement by Kraft Heinz confirmed “that it has made a comprehensive proposal to Unilever about combining the two groups to create a leading consumer goods company with a mission of long-term growth and sustainable living.
“While Unilever has declined the proposal, we look forward to working to reach agreement on the terms of a transaction,” the statement added. This makes an eventual takeover of the company with headquarters in London and Rotterdam one of the largest in corporate history.
Unilever spokeswomen did not immediately comment on the deal, but The Guardian reported later on Friday that the group in a statement said Kraft Heinz offered $143 billion in a mixture of cash and its own shares.
In its statement, Unilever noted: “Their proposal represents a premium of 18% to Unilever’s share price at the close of business on 16 February 2017. This fundamentally undervalues Unilever. Unilever rejected the proposal as it sees no merit, either financial or strategic, for Unilever’s shareholders. Unilever does not see the basis of any further discussion.”
raft Heinz spokesman, Michael Mullen, in a statement to CNNMoney also on Friday confirmed “comprehensive proposal to Unilever about combining the two groups to create a leading consumer goods company with a mission of long-term growth and sustainable living.
Kraft’s overture is believed to be coming on the heels of the worst annual performance of Unilever’s stock last year since the financial crisis in 2008. The shares fell 2.5% in the course of 2016, though European rival Nestle SA fared only marginally better, losing 2% in the same 12 months.
The deal would combine a company famous for Kraft macaroni and cheese and Heinz ketchup with one that owns the Dove brand of personal care products, Ben & Jerry’s ice cream and Lipton tea.