kraft heinz
A Heinz Ketchup bottle sits between a box of Kraft macaroni and cheese and a bottle of Kraft Original Barbecue Sauce on a grocery store shelf in New York, March 25, 2015. REUTERS/Brendan McDermid/File Photo

Mondelez International’s shares jumped by as much as 12 percent in extended trade Wednesday after a report suggested that the global snack giant may be acquired by Kraft Heinz. Sources, however, have reportedly denied that the companies are in touch over any such possible deal.

Bloomberg cited Swiss economic magazine Bilanz reporting that the U.S. snack maker could be a target for the company backed by Warren Buffett’s Berkshire Hathaway and Jorge Paulo Lemann’s 3G Capital. However, according to Reuters, people familiar with the matter said Mondelez has not heard from Kraft Heinz. Mondelez’s shares were up less than 6 percent after the Reuters report.

Mondelez separated from Kraft — whose shares were up by almost 3 percent in extended trade Wednesday — in 2012, following which it concentrated on divestitures and asset sales to reduce costs and increase profit margins. CNBC reported that the company is in the middle of a $3 billion cost-saving program, expected to run through 2018.

East Hanover, New Jersey-based Mondelez made an unsuccessful bid at acquiring Hershey in June this year, which was unanimously rejected by Hershey’s board. According to reports, the takeover bid was to keep Mondelez from becoming a target for takeovers itself as it has been under pressure from investor William Ackman to ensure a faster growth of revenue or consider selling itself to a rival.

Berkshire and 3G have been attempting to expand their hold in the industry by taking H.J. Heinz private in 2013, following which it was merged with the Kraft Foods Group last year. The company’s market value has risen following an attempt to reduce costs with job cuts and similar measures.

A spokesman for Mondelez as well as representatives for Kraft Heinz reportedly declined to comment.

RELATED STORIES