Kraft Heinz, Mondelez make the cut in Campbell Soup's international business auction: sources
By Greg Roumeliotis and Harry Brumpton (Reuters) - U.S.
By Greg Roumeliotis and Harry Brumpton
(Reuters) - U.S. food companies Kraft Heinz Co and Mondelez International Inc have been short-listed to participate in the second round of Campbell Soup Co's auction of its international business, people familiar with the matter said.
The development boosts Campbell Soup's chances of divesting its international portfolio, which includes its Australian cookie brand Arnott's and Danish baked snacks maker Kelsen Group, with one deal, two sources said on Sunday.
Both Kraft Heinz and Mondelez are interested in the assets so they can expand their global footprint. Based on the first-round bids received, Campbell Soup could fetch close to $3 billion for its international business, the sources added.
Private equity firms Bain Capital LP, KKR & Co Inc and FinTrek Capital Hong Kong Co Ltd also made the shortlist to participate in the second round of the auction for Campbell Soup's international business, according to the sources.
Nutella maker Ferrero SpA, which had previously also expressed interest in the assets, is currently in talks with Campbell Soup over whether it will remain involved in the auction process, the sources added.
Campbell Soup could wrap up the auction for its international business in the first quarter of 2019, the sources said, asking not to be identified because details of the process are confidential.
Campbell Soup, Kraft Heinz, Mondelez, Ferrero, Bain, KKR and FinTrek Capital did not immediately respond to requests for comment.
Under pressure from investors to boost its profitability and stock performance, Campbell Soup announced in August it would make preparations to divest its international portfolio as well as its "fresh" business, which includes Bolthouse Farms and Garden Fresh Gourmet.
This will allow it to reduce its $8 billion debt pile and focus on its core North American market, as well as its snacks, meals and beverages businesses. Most of the debt weighing on Campbell Soup is the legacy of its $6.1 billion acquisition in March of snack maker Snyder's-Lance Inc.
Last Thursday, Campbell Soup named Mark Clouse, the former CEO of Pinnacle Foods, as its new chief executive, in another key step in the company's efforts to regain market share and boost profits. The pick had the backing of Campbell Soup shareholder Third Point LLC.
In November, Campbell Soup settled a proxy contest against Third Point by agreeing to add two of the activist hedge fund's nominees to the food company's board, and giving the investor a say in selecting Campbell Soup's next CEO.
(Reporting by Greg Roumeliotis and Harry Bumpton in New York; Additional reporting by Richa Naidu in Chicago; Editing by Phil Berlowitz)
This story has not been edited by Firstpost staff and is generated by auto-feed.
Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.
By Jessica Resnick-Ault NEW YORK (Reuters) - Oil prices strengthened on Wednesday, as OPEC and its allies were seen complying with a pact to cut oil supply in September, even as concerns loomed that recovery in fuel demand will be stalled by soaring global coronavirus cases. Early in the day crude was boosted by a bullish stock market. Even as equities whipsawed on pandemic worries, oil stayed higher, buoyed by expectations that OPEC could staunch a supply glut
By Tina Bellon and C Nivedita (Reuters) - Tesla Inc will further cut the price of its Model S "Long Range" sedan in the United States to $69,420, the electric carmaker's chief executive, Elon Musk, announced in a tweet https://bit.ly/2H0JCP0 on Wednesday. The anticipated drop marks the second time this week Tesla has cut the price for the high-end sedan, following a 4% cut of the Model S's price in the United States on Tuesday to $71,990.
By Jeff Mason DES MOINES, Iowa (Reuters) - Under siege over his handling of the novel coronavirus pandemic, President Donald Trump on Wednesday cited what he said was his son's mild bout of the virus as a reason why American schools should reopen as soon as possible. Trump made the comment about his son, Barron, as the president swept into Iowa on a mission to shore up support in battleground states that he won in 2016 but is in danger of losing to Democrat Joe Biden barely three weeks before the election. First lady Melania Trump announced in a statement earlier in the day that the virus that struck both her and her husband had also infected their 14-year-old son