Colgate-Palmolive Stock Rises on Buyout Speculation

After Kraft Heinz withdrew its bid for Unilever, does it want to buy Colgate-Palmolive instead?

Daniel Sparks
Daniel Sparks
May 17, 2017 at 5:33PM
Consumer Goods

What happened

Shares of consumer-products company Colgate-Palmolive (NYSE:CL) increased as much as 7.4% on Wednesday on speculation that Kraft Heinz (NASDAQ:KHC) could acquire the company. Colgate stock finished the trading day up about 5.7%.

So what

Citing "a person claiming to have knowledge of the matter," StreetInsider reported that consumer food product company Kraft Heinz was "considering a takeover of Colgate-Palmolive."

Chart showing a stock price moving upward

Image source: Getty Images.

The buyout rumors come after Kraft Heinz withdrew its bid to buy Unilever. Kraft's recent interest in acquiring Unilever confirms the company's willingness to spend large sums on an acquisition and gives some substance to talk of a potential Colgate buyout.


Related Articles

Now what

Since neither company has released an official statement about the possibility of a Kraft Heinz takeover of Colgate-Palmolive, investors would be wise to refrain from giving the deal any weight in their analysis of either stock. However, investors may want to keep an eye out for comments from either company regarding this speculation.