A fly in the soup?
Kraft checked out Campbell & passed: source
Dan Loeb may not like what he finds in this soup.
The billionaire hedgefund boss — who has been prodding Campbell Soup to sell itself — has recently been telling investors that rival Kraft Heinz was willing to pay nearly $50 a share for Campbell, but that Campbell’s board wasn’t responsive, a source told The Post.
But while Warren Buffett-backed Kraft Heinz did explore buying Campbell in recent weeks, the company took a look at its books and passed, according to a source with direct knowl- edge of the situation.
“There was some kicking of the tires, but it did not get very far,” the source said, noting that Campbell had opened its data room and invited Kraft Heinz to review its financials.
The Post reported in August that Kraft Heinz — widely seen as the most logical buyer for the soup maker — was looking at Campbell but was not willing to pay much of a premium.
Campbell’s shares on Thursday rose 1.9 percent, to $37.19, giving the company an $11.2 billion market cap.
That’s a big bite for Kraft Heinz, whose stock has gotten hammered this year as consumer appetites for junk food continue to wane.
Shareholder activist Loeb’s Third Point on Wednesday sent a letter to Campbell demanding to see the company’s records including materials regarding its just-completed strategic review.
In the letter, Third Point says “potential acquirors of all or a meaningful portion of the company were not contacted nor was a sale pursued — which is flatly inconsistent with the board’s public promise that it was reviewing a “full slate” of options.”
However, the facts may not support Loeb’s harsh words.
“Kraft Heinz looked, but is not interested,” the direct source said, adding, “I think Campbell was open to talking to people.”
Third Point, with a 5.7 percent Campbell stake, is waging a tough proxy contest at Campbell, whose annual meeting is slated for Nov. 29.
More than 40 percent of Campbell’s shares are held by descendants of John Dorrance, who invented condensed soup. Most family members are thought to be against Third Point’s slate.
“We do not comment on rumors or speculation,” a Campbell spokesperson said. “The board remains committed to evaluating all strategic options if any of those options can demonstrably enhance value for all shareholders.”
Kraft Heinz declined to comment.
Campbell announced in August it is selling non-core businesses, which include Arnott’s and the Kelsen Group, and its Campbell Fresh business, which includes Bolthouse Farms, Garden Fresh Gourmet and the refrigerated soup business.
On Thursday, The Wall Street Journal reported that Campbell was in talks to sell Bolthouse Farms to its former CEO, Jeff Dunn.