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Wall Street rumor: Will Kraft Heinz buy Pepsico?

Image result for ore ida potatoKraft Heinz Co., producer of Ore-Ida American brand of potato-based frozen foods, is hungry for a big deal, but can it stomach a fight? “Based on how quickly they walked away from Unilever last year,” Morningstar analyst Erin Lash told TheStreet on Monday, June 18, “they don’t seem to want to be involved in a hostile takeover.” In Feb. 2017, Kraft Heinz approached Unilever NV with a $143 billion bid. Yet when Unilever’s board and management team opposed it, Kraft Heinz promptly abandoned its plans. “We believe Kraft Heinz will lead the industry in consolidation,” Stifel analyst Chrisopher Growe wrote in a note on Monday, June 18, “and while this opportunity has come and gone in some investors’ eyes, we still see the opportunity for a large-scale, transformational acquisition…” PepsiCo’s, parent company of potato snack maker Frito-Lay, is committed to returning cash to investors, “while balancing ongoing investments in research and development and advertising and market,” wrote Wells Fargo analyst Bonnie Herzog. Read more