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Feb. 17, 2017, 11:45 a.m. EST

Mondelez's stock slumps after Kraft's bid for Unilever reduces buyout odds

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By Tomi Kilgore

Shares of Mondelez International Inc. /quotes/zigman/11829567/composite MDLZ +0.55% shed 1.4% in midday trade, as Kraft Heinz Co.'s /quotes/zigman/54335842/composite KHC +0.09% bid to buy Unilever PLC /quotes/zigman/203077/composite UL -0.24% might reduce the likelihood that Mondelez gets acquired. Analyst Pablo Zuanic at Susquehanna said that although Unilever has rejected Kraft Heinz's bid, he believes "a deal to eventually happen." For now, Zuanic said the bid "should lower the probability of a bid for [Mondelez]," as the focus seems to be more on grocery than snacks. He said the bid should also pressure the stocks of a number of U.S.-heavy food companies, including General Mills Inc. /quotes/zigman/227548/composite GIS +0.73% , Campbell Soup Co. /quotes/zigman/221274/composite CPB -0.09% and Kellogg Co. /quotes/zigman/231157/composite K +0.58% . General Mills shares dropped 3.3% after cutting its sales outlook, Campbell's stock shed 6.7% after reporting disappointing quarterly sales and Kellogg's shares slumped 2.9%. Kraft's stock soared 7.6% and Unilever's U.S.-listed shares climbed 11%, while the S&P 500 /quotes/zigman/3870025/realtime SPX +0.11% eased 0.2%.

Read the full story:
Warren Buffett is $4 billion richer after Kraft Heinz’s merger bid for Unilever

/quotes/zigman/11829567/composite
US : U.S.: Nasdaq
$ 43.75
+0.24 +0.55%
Volume: 5.11M
March 29, 2017 4:00p
P/E Ratio
42.73
Dividend Yield
1.74%
Market Cap
$66.71 billion
Rev. per Employee
$288,033
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/quotes/zigman/54335842/composite
US : U.S.: Nasdaq
$ 91.49
+0.08 +0.09%
Volume: 1.40M
March 29, 2017 4:00p
P/E Ratio
32.44
Dividend Yield
2.62%
Market Cap
$111.26 billion
Rev. per Employee
$645,878
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/quotes/zigman/203077/composite
US : U.S.: NYSE
$ 50.06
-0.12 -0.24%
Volume: 1.13M
March 29, 2017 4:03p
P/E Ratio
24.93
Dividend Yield
2.75%
Market Cap
$64.45 billion
Rev. per Employee
$344,278
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/quotes/zigman/227548/composite
US : U.S.: NYSE
$ 59.44
+0.43 +0.73%
Volume: 2.47M
March 29, 2017 4:01p
P/E Ratio
22.01
Dividend Yield
3.23%
Market Cap
$34.25 billion
Rev. per Employee
$403,618
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/quotes/zigman/221274/composite
US : U.S.: NYSE
$ 57.57
-0.05 -0.09%
Volume: 963,004
March 29, 2017 4:02p
P/E Ratio
35.98
Dividend Yield
2.43%
Market Cap
$17.52 billion
Rev. per Employee
$480,606
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/quotes/zigman/231157/composite
US : U.S.: NYSE
$ 73.08
+0.42 +0.58%
Volume: 2.02M
March 29, 2017 4:01p
P/E Ratio
37.48
Dividend Yield
2.85%
Market Cap
$25.58 billion
Rev. per Employee
$348,257
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/quotes/zigman/3870025/realtime
US : S&P Base CME
2,361.13
+2.56 +0.11%
Volume: 1.73B
March 29, 2017 4:46p
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