Kraft Heinz won't acquire Unilever, after all, the two companies announced in a joint press release. The news sent ripples through Unilever's stock, which fell 7% after rising 13% on the initial news. 13%.

The original bid was for $143 million, but Unilever's response wasn't enthusiastic, claiming the price "fundamentally undervalues" the company. Ken Shea, a Bloomberg analyst questioned the whole deal: "The strange episode suggests that Kraft Heinz acted a bit hastily with its takeover plan, and evidently did not think it fully through. Also, the timing and size of the bid-coming just after its earnings conference call on Wednesday last week, in which it downplayed the need for acquisitions-likely leaves their Wall Street credibility diminished."

Image source.

Discussion:

• How does the withdrawal reflect on Unilever? Kraft Heinz?
• What's your view of the joint statement? Why would the two companies take this approach?