2017.02.1922:43:00UTC+00Kraft Abandons Takeover Bid for Unilever After Early Disapproval

Kraft Heinz Co. junked its $143 billion offer for a merger with Unilever NV, abandoning its proposal just two days after it was announced.

The Anglo-Dutch company rejected the $50-per-share bid on Friday, stating that Kraft's proposal offers no value, either financial or strategic, to the company. It also said that the officer fundamentally undervalued the F&B giant.

The deal, which would have been one of the largest takeover in the industry, came after major stockholders of Kraft 3G Capital and Berkshire Hathaway ruled that Unilever's negative reaction made a friendly takeover improbable, according to people privy to the matter. Berkshire hold around 27% of Kraft while 3G holds around 24% of the company.

Both 3G and Buffet's Berkshire also discerned that a dragged out war of words would not be in the best interest of Kraft and would hurt possible deal opportunities in the future, people knowledgeable of the proceedings said.

A spokesperson said that Kraft's intention, which was announced at a highly early stage, said that they had aimed to push through for friendly proceedings but Unilever has distinctly showed it did not want to push through with deal talks.

Unilever shares surged 13% and ended at a record 44.80 euros, while Kraft Heinz's shares rose 11% in New York trading.