Kraft and Unilever's Big Food Fight

Unilever may have a fight on its hands to stay independent in the face of a pursuit by U.S. food giant Kraft Heinz Co. The Anglo-Dutch consumer goods group has rebutted an initial $143 billion cash-and-shares proposal. It sounds big but it's a low-ball offer that's easy to swat away. If Kraft comes back with more, Unilever will need to serve up with some clever ideas to stay independent.

Size is no defense. Unilever was valued at 101 billion pounds ($125 billion) prior to Kraft's interest leaking. But it is trapped in some awkward trends. Even though it is an international stock denominated in sterling, the shares have under-performed the FTSE 100 over the past year. Recently it has fallen victim to the sell-off in plodding defensive stocks as investors have sought racier growth stories.