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Campbell's stock falls after J.P. Morgan downgrades, dashes hopes of a merger

Tomi Kilgore

Shares of Campbell Soup Co. slid 1.2% in midday trade Friday, after J.P. Morgan analyst Ken Goldman turned bearish on the convenience foods company, on the belief that optimism surrounding a potential buyout may be unwarranted. The stock had rallied 2.5% to a near 4-month high on Aug. 3, after The New York Post reported that Kraft Heinz Co. (khc) opened exploratory talks about acquiring Campbell. "Although we agree with Third Point that [Campbell's] best option is to sell, we see a sale as an unlikely outcome," Goldman wrote in a note to clients.