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

Shares of Mondelez International Inc MDLZ were moving higher Thursday following a report that Kraft Heinz Co 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 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.