Mondelez Touches 52-Week High - Analyst Blog
March 25 2013 - 12:55PM
Zacks
Shares of Mondelez International, Inc.
(MDLZ) soared to a 52-week high of $30.12 on Friday, Mar 22, 2013,
with speculation rife over its possible merger with beverage &
snack giant PepsiCo, Inc. (PEP). The closing price
of the food giant on Mar 22, 2013, was $29.73, representing a solid
1-year return of about 18.7% and year-to-date return of about
11.5%. Average volume of shares traded over the last 3 months
stands at approximately 12883K.
Merger Speculation
The Telegraph of London reported last Friday that
activist investor Nelson Peltz is fast building stakes in PepsiCo
and Mondelez, possibly in pursuit of a large $170 billion merger of
the consumer giants.
The exact amount of Peltz’s investment is unknown. However, the
news daily citing some unnamed source stated that Peltz could have
already spent close to $2 billion to buy major stakes in the food
and beverage giants through his investment vehicle, Trian Fund
Management.
The news daily conjectured that Peltz may push PepsiCo to either
take over Mondelez or split up into 2 separate entities. Shares on
PepsiCo and Mondelez catapulted up owing to the merger rumors.
Mondelez emerged from such a split last year when Kraft Foods,
Inc was demerged into 2 separate companies, Mondelez and
Kraft Foods Group (KRFT). Kraft Foods Group
consists of the North American grocery business of the old Kraft
Foods while Mondelez handles the latter’s snack business, which
includes brands like Cadbury and Toblerone chocolates.
This speculation of a possible merger comes on the heels of a
surprising merger announcement last month, when H.J. Heinz
Company (HNZ) with Warren Buffet’s company,
Berkshire Hathaway (BRK.B) and a private Brazilian
investment firm, 3G Capital.
BERKSHIRE HTH-B (BRK.B): Free Stock Analysis Report
HEINZ (HJ) CO (HNZ): Free Stock Analysis Report
KRAFT FOODS GRP (KRFT): Free Stock Analysis Report
MONDELEZ INTL (MDLZ): Free Stock Analysis Report
PEPSICO INC (PEP): Free Stock Analysis Report
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