Shares of Kellogg slipped Wednesday morning after a Middle Eastern private equity investor said it was dropping out of a bidding competition with the U.S. cereal maker over an Egyptian baked goods manufacturer.
The Abraaj Group said it was bowing out after making an offer last week of 88.09 Egyptian pounds ($12.36) for each share of BiscoMisr. That bid totaled about $142.1 million.
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The private equity firm said Kellogg then increased its bid to $89.86 Egyptian pounds per share, or $12.60 per share.
A Kellogg representative confirmed the amount of the company's most recent bid for a majority stake in BiscoMisr but declined to comment further until that offer closes on Jan. 11.
The Battle Creek, Michigan, company makes Frosted Flakes and Special K cereals, Pop Tarts and Eggo waffles, among other products. It has been contending with slumping cereal sales and growing competition in the breakfast category from alternatives like yogurt or fast-food breakfast sandwiches.
The company has been cutting costs and said late last year that it would cut its global work force by 7 percent.
Kellogg Co.'s stock slid 44 cents to $66.18 Wednesday morning, while broader indexes climbed slightly. The stock had advanced about 9 percent so far this year, as of Tuesday.