Blog: Kellogg shows willing but is it enough to secure UB?
Katy Askew | 3 October 2014
Kellogg CEO John Byrant has reportedly flown to London to meet with United Biscuits as part of the US company's bid to seal a deal for the UK biscuits group.
According to The Wall Street Journal, Byrant has made the trip to discuss a bid that values UB at around GBP2bn (US$3.23bn).
Kellogg is up against some stiff competition from strategic buyers also competing to take control of United Biscuits. The likes of Ontario Teachers' Pension Plan-backed Burton's Biscuit Co. and Yildiz Holding-backed Ulker are also said to be in the running for the firm. Added to the pot can be a potential float of United Biscuits, which owners Blackstone Group and PAI Partners are also said to be considering.
The private-equity firms are working to extract maximum value as they exit their investment in the maker of Jacob's and McVitie's. And the rivalry to take control of the firm appears intense.
Byrant's visit to London is a statement of intent. But it will take more than this to ink an agreement. Kellogg shareholders will likely be feeling wary the company does not pay an overly high premium in its chase for United Biscuits.
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