Kraft Foods Surges 17% on WSJ Report of Takeover Talks With 3GDan Reichl
Kraft Foods Group Inc. surged 17 percent in extended New York trading after the Wall Street Journal reported that the maker of Velveeta and Jell-O is in talks to be acquired by Jorge Paulo Lemann’s 3G Capital.
Kraft jumped to $71.65 at 7:45 p.m. in New York after closing at $61.33 in regular trading. The Northfield, Illinois-based company had declined 2.1 percent this year before the Wall Street Journal report.
3G, a Brazilian private-equity firm, is negotiating to acquire Kraft in a deal that would probably be valued at more than $40 billion, the newspaper reported, citing a person familiar with the matter it didn’t identify.
Kraft has been an independent company since October 2012, when it split with Mondelez International Inc. While Kraft has a stable of household brands, it has struggled to maintain growth. Tony Vernon stepped down as chief executive officer in December and was succeeded by Chairman John Cahill.