Mondelez's Stock Slumps After Kraft's Bid For Unilever Reduces Buyout Odds

Shares of Mondelez International Inc. shed 1.4% in midday trade, as Kraft Heinz Co.'s bid to buy Unilever PLC might reduce the likelihood that Mondelez gets acquired. Analyst Pablo Zuanic at Susquehanna said that although Unilever has rejected Kraft Heinz's bid, he believes "a deal to eventually happen." For now, Zuanic said the bid "should lower the probability of a bid for [Mondelez]," as the focus seems to be more on grocery than snacks. He said the bid should also pressure the stocks of a number of U.S.-heavy food companies, including General Mills Inc. , Campbell Soup Co. and Kellogg Co. . General Mills shares dropped 3.3% after cutting its sales outlook, Campbell's stock shed 6.7% after reporting disappointing quarterly sales and Kellogg's shares slumped 2.9%. Kraft's stock soared 7.6% and Unilever's U.S.-listed shares climbed 11%, while the S&P 500 eased 0.2%.