Sink your teeth in

18 December 2017 By Lauren Silva Laughlin Follow @TheRealLSL

Even with synergies, the company’s $5 bln offer for pretzel maker Snyder’s is a financial stretch. Campbell might be a better target than buyer. Big family shareholders make opposition hard, but Elliott’s campaign against oil producer Hess shows insiders can’t get complacent.

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Campbell Soup said on Dec. 18 it had offered to buy pretzel maker Snyder's-Lance for $50 a share, or $4.9 billion. The offer represents a more than 27 percent premium to the closing price of Snyder's-Lance shares on Dec. 13, the day before the deal leaked to the market.

Campbell said that it anticipates cost synergies from the deal to be $170 million by the end of fiscal 2022. The company plans to finance the deal using $6.2 billion of debt, pushing its leverage multiple up to 4.8 times the company’s EBITDA at closing.

On Dec. 14 Elliott Management said it was readying a new fight with oil company Hess because of the company’s poor performance. Elliott conducted an activist campaign against Hess in 2013 and put three directors on the company’s board.

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