Kraft Heinz: Credit Suisse says Danone acquisition unlikely.

(CercleFinance.com) - Credit Suisse analysts believer that there are too many obstacles for a highly-speculated acquisition of Danone by US food giant Kraft Heinz.


In a research report sent to clients on Monday, the broker said that while Danone's recent struggles and the changing political landscape in France may have aroused Kraft Heinz's attention, a deal, although potentially accretive, actually seems unlikely.

"The prospect of a US-based company with a reputation for savage job cuts absconding with a "national jewel" like Danone would likely cause an outrage in the French media," Credit Suisse says.

"Even activist investor Corvex, which took a 400 million dollar stake in Danone, does not appear to assume a take-out in its investment thesis," the broker adds.

Credit Suisse has an "outperform" rating on Kraft Heinz with a target price of 100 dollars.


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