Unilever rejects $143bn bid from Kraft

Food and household good giant Unilever has rejected a takeover bid by US company Kraft that valued the company at $143 billion.

Shares in the Anglo-Dutch giant Unilever rose 11% in London in the wake of takeover speculation, but the firm said it saw “no merit, either financial or strategic” in the bid.

“This fundamentally undervalues Unilever,” Unilever said. “Unilever rejected the proposal as it sees no merit, either financial or strategic, for Unilever’s shareholders.”

The company also said it saw no future for such an agreement, adding: “Unilever does not see the basis for any further discussions.”

However, Kraft said it had made “a comprehensive proposal” and looked “forward to working to reach agreement on the terms of a transaction”.

Kraft’s proposal valued Unilever at a total equity value of approximately $143 billion.