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Ackman takes stake in Mondelez

Thursday, August 06, 2015 - 01:25

Activist investor Bill Ackman may be betting the maker of Oreos will get bought out. One potential buyer is Kraft Heinz, says an analyst. Fred Katayama reports.

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Activist investor Bill Ackman may be betting the maker of Oreos and Tang will get swallowed up. He bought a 7.5 percent stake in snacks maker Mondelez International. Ackman told CNBC he likes the company's growth prospects. But analysts think he sees it as a potential play. Media reports say Ackman feels Mondelez must boost revenue and cut costs or sell itself. The Wall Street Journal says potential acquirers include Kraft Heinz and PepsiCo. A purchase by Kraft Heinz would take Mondelez full circle. Mondelez is the former international unit of Kraft Foods and took on a new name after the split. Kraft has since merged with ketchup maker H.J. Heinz. Ackman's got company. Fellow activist Nelson Peltz sits on Mondelez's board. Peltz has pushed it to cut costs and boost margins. He has dropped his drive to get Mondelez to merge with PepsiCo. Morningstar senior analyst Erin Lash thinks Kraft Heinz could be a potential buyer if Mondelez fails to boost margins, saying however, "I doubt a further tie up is likely for at least another year or two as the integration of Heinz and Kraft continues." Investors buying into Ackman's bet, driving Mondelez's shares sharply higher. The stock has outperformed the broader market this year, gaining 27 percent.

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Ackman takes stake in Mondelez

Thursday, August 06, 2015 - 01:25