No one has actually made a bid for MDLZ. Peltz is saying that if PEP would buy MDLZ it would be for around $35-$38 per share. Now that the dollar amount is out there yes someone (KO) could throw out a valid bid for MDLZ and would have to be for more that the $35.........
I say the reason MDLZ has not taken a boost is because the MM'S were caught off guard and they are scrambling for shares to make a run. If I am right we will see a run by the close of today..........
I submit KO is not interested because they currently have nothing to add to a MDLZ
business to improve the MDLZ metrics......no real synergies.....no real bid.
Reason MDLZ did not jump to a $ 36 handle......is due to the market not thinking
that the PEP board will actually decide to make a viable bid for MDLZ.
Peltz needs to get additional "whale" investors on board who own large positions
in PEP, and then explain to the PEP board, not MDLZ, that its wants MDLZ in play.
This deal has everything to do with the PEP board......MDLZ and Rosenfeld
are just hanging in the wind, in a position of weakness, due to its own operating
mishaps. MDLZ fate now is being negotiated by Petlz & the Pepsi Board of Directors.
If and when Peltz announces he has additional large Pepsi investors supporting
his plan, that's when MDLZ will move directly to $ 36....not until.