finance
Magnum Ice Cream Shares Rise 18% on Report of Potential Private Equity Bid
Shares of Magnum Ice Cream Company rose sharply after Reuters reported that private equity firms including Blackstone and CD&R are exploring a possible takeover bid. The development comes six months after the company spun off from Unilever. Magnum owns several ice cream brands including Ben & Jerry's, Cornetto and Heartbrand.
May 15, 6:31 AM·1m read1 source
bbc.co.ukAudio version
Tap play to generate a narrated version.
Developing·Limited corroboration so far. This page will refresh as more sources emerge.
Shares of Magnum Ice Cream Company rose as much as 18 percent Friday after Reuters reported that Blackstone and CD&R are among the private equity firms in the early stages of exploring a bid for the company. The stock move occurred six months after Magnum Ice Cream Company spun off from Unilever to create the world's largest standalone ice cream maker.
The company owns the Magnum ice cream brand as well as Cornetto, Heartbrand and Ben & Jerry's. According to the Reuters report, which cites sources familiar with the matter, the private equity firms are monitoring the company's share price before deciding whether to proceed.
Potential bidders have been waiting for Magnum to report summer sales figures before making a decision.
Amsterdam-listed shares were up 17 percent at midday in European trading. U.S.-listed shares jumped by a similar amount in premarket trading. The stock had been trading at similar levels since the spin-off from Unilever was completed in December. Magnum reported first-quarter sales growth in April that beat expectations and lifted the stock at that time.
A group led by a Ben & Jerry's co-founder has campaigned for years for that brand to operate independently. Blackstone declined to comment on the report. CD&R and Magnum Ice Cream Company did not immediately respond to requests for comment.
