The Rise And Fall Of A Mondelez-Kraft Heinz Merger Rumor

Shares of Mondelez International Inc (NASDAQ: MDLZ) were moving higher Thursday following a report that Kraft Heinz Co (NASDAQ: KHC) was in talks to acquire the company.

Rumor's Roots

The news was first reported by German paper Bilanz after-hours Wednesday, although several different outlets have indicated no ongoing dialogue between the two companies.

Squashed Rumor

A report from the New York Post “confirmed that Mondelez is not in takeover talks” after first publishing a report that Brazilian private equity firm 3G Capital was interested in an acquisition.

The Chicago Tribune and Reuters likewise both reported that Kraft and Mondelez are not in M&A talks.

However, investors appear skeptical regarding potential M&A activity for the Oreo maker. Amid M&A rumors, acquiring stocks typically drop while target companies typically rise. Mondelez is still rising despite these reports to the contrary. This suggests the market may not be fully convinced M&A chatter is over.

At last check in Thursday's afternoon session, shares of Mondelez were still up over 4 percent.

Earlier in the year, Mondelez was involved in some serious takeover talks with Hershey Co (NYSE: HSY), but they fell through in August. It remains to be seen if this latest deal materializes, but it is likely that M&A activity surrounding Mondelez in imminent in the future.