General Mills
has made a bid of close to $8 billion for Blue Buffalo Pet Products Inc.
The bid is so
high that stock market analysts say it’s unlikely that there will be competing
offers.
"In pet
food, as in human food, consumers are seeking more natural and premium
products," said General Mills chief executive officer Jeff Harkening.
General Mills
is offering $40 per Blue Buffalo share, representing a premium of 17.2 percent
to the pet food company's Thursday closing price.
"We like
the strategic merit but the price is steep and General Mills will have to work
hard to extract value from the deal," Jefferies analyst Akshay Jagdale
said.
He wondered
if General Mills could properly fold in Blue Buffalo after having difficulties
in growing Yoplait, in which it acquired a majority stake in 2011.
