Snyder’s-Lance Inc Stock Surges on Campbell’s Soup Buzz
Snyder’s-Lance Inc (NASDAQ:LNCE) stock was surging today on reports that Campbell Soup Company (NYSE:CPB) may acquire it.
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The recent report claims that Campbell Soup Company has made an offer to purchase Snyder’s-Lance Inc. However, it is still unknown how much CPB is willing to pay for LNCE. The report also says that one other company is interested in acquiring the snack company.
According to this report, Snyder’s-Lance Inc has been in contact with an investment bank to have it act as an advisor for a potential sale. The source of the news is remaining anonymous and says that there isn’t a guarantee that LNCE will go for either offer.
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The idea of Campbell Soup Company obtaining Snyder’s-Lance Inc isn’t an absurd one. The company has been looking to expand its offerings as sales of soup decline. The snack business has also been growing lately, which could be the incentive it needs to make an offer for LNCE, reports CNBC.
If Snyder’s-Lance Inc does go forward with the acquisition plans, it could be the largest purchase Campbell Soup Company has ever made. It’s likely that CPB will make an mixed offer for LNCE. This would include buying some LNCE stock with cash, but using its own stock to obtain the rest.
No matter what happens, the news has certainly perked up the ears of investors. LNCE stock was up 6% as of Friday afternoon and CPB stock was up 2% during that time. LNCE stock is up 17% year-to-date and CPB stock is down 20% year-to-date.
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As of this writing, William White did not hold a position in any of the aforementioned securities.
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