Pershing Square Capital Management acquires 7.5% stake in Mondelez

Pershing Square Capital Management has revealed a 7.5% stake in confectionery, food and beverage company Mondelez International for an estimated $5.5bn.

It is being speculated that activist investor William Ackman, who also owns Pershing Square Capital Management, might be considering a takeover of the company, reported CNBC.

Pershing Square said that it owned around 120.3 million shares in the company, including forward purchase contracts and call options.

If the transaction fructifies, the sale will be one of the biggest in a series of mergers in the food industry in the past two years, including Tyson Foods’ $7.7bn takeover of the Hillshire Brands.

A spokerwoman from Mondelez was quoted by the Wall Street Journal as saying: "We welcome Pershing Square as investors in our company. We’ll continue to focus on executing our strategy and on delivering value for all our shareholders."

Ackman also felt that Mondelez would need to increase its revenues faster and slash expenses or sell itself to some rival company. It is being speculated that in such a scenario, Kraft Heinz with its $97.6bn market cap, could be a potential buyer, the publication adds.

Mondelez earlier divested its North American grocery business to Kraft Foods Group in 2012.

Employing around 107,000 people across the world, Mondelez produces cookies, crackers, chocolates, gums, and candies, comprising brands like Oreo, Chips Ahoy!, Toblerone, Cadbury Dairy Milk, Trident, Dentyne, Chiclets, Halls, and Cadbury Dairy Milk Eclairs, amongst others.