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Back down to earth with a bump.
London-listed shares in Unilever have slumped 8 per cent this morning following news that Kraft Heinz has dropped its $143bn bid takeover bid to create the world’s second largest consumer goods group. The shares enjoyed their best day since 1987 on Friday, when news of the potential tie-up broke.
Just two days after declaring its interest, Kraft Heinz said it had “amicably” agreed to end its merger plans, sending Unilever shares down 8.6 per cent publication time following a 13.5 per cent surge at the end of last week. That puts them on course for their worst day in 2008.
“Unilever and Kraft Heinz hold each other in high regard. Kraft Heinz has the utmost respect for the culture, strategy and leadership of Unilever”, said a statement from the Warren Buffet-backed Kraft Heinz on Sunday.
A takeover would have combined brands such as Kraft Mac & Cheese and Heinz Tomato Ketchup with Unilever’s Dove soap and Magnum ice cream.