Activist investor and Founder of Pershing Square Holdings Bill Ackman has purchased a stake worth about $5.5 billion in Mondelez International Inc, the snack giant responsible for Cadbury chocolate and Oreo cookies, in what analysts are saying could be attempt to push the company to boost earnings or sell itself.
Mondelez, who has already been shutting factories and shedding unprofitable businesses, has set a share buyback of up to $13.7 billion, but many are predicting Ackman will want even more from the company.
"We suspect Mr. Ackman's primary goal is to have Mondelez sold," JP Morgan analyst Ken Goldman told Reuters.
Mondelez's shares jumped on the initial news that Ackman would become the company's biggest shareholder, quickly returning to their normal positioning when doubts arose that a suitable buyer could be found.
At the current share price of around $46.40, Mondelez is valued at about $80 billion, according to Reuters.
So far, analysts have mentioned Kraft Heinz or PepsiCo as potential buyers.