Kraft merger bid 'fundamentally undervalues' firm: Unilever

THE HAGUE: An offer by giant US food and beverage company Kraft Heinz to merge with Unilever was snubbed because it "fundamentally undervalues" its Dutch rival, Unilever said Friday.

The Rotterdam-based group said the Kraft offer valued Unilever at around $143 billion, representing an 18% premium over the share price at the close on Thursday.

"This fundamentally undervalues Unilever," it said in a statement, adding it had "no merit, either financial or strategic, for Unilever's shareholders. Unilever does not see the basis for any further discussions."

But investors still massively bought into Unilever shares, which are quoted in London, pushing them over 12 percent higher.