Bill Ackman needs Mondelez (MDLZ) to make a deal, any deal. Valeant's (VRX) not doing what it has to -- it's Johnson & Johnson's (JNJ) turn to attack the company next week and despite all the support he's given CEO Joe Papa, in the end $32 billion in debt is $32 billion in debt, and no company at the mercy of others in its industry can shoulder that burden without concern. Plus, Herbalife's (HLF) gone to where it should go on an earnings basis, which is not where Ackman wants it.
Ackman wants what Ackman gets, so it is time for Mondelez, a big position of his, to either put itself up for sale to help Ackman make his year or do a very positive deal to have Ackman make his year or he runs the risk of being Eddie "Sears Holdings" Lampert, and when you are as rich as all of these guys, you play for pride. You think NFL owners like to lose?
We are dealing with NFL owners. So it's free agency time and Ackman needs to win this bout with free agency.
I point all this out because with interest rates going higher, the traditional food and drug and consumer packaged-goods should be selling off, but with Ackman's agent on the prowl, it's too dangerous to go short. Heck, maybe even Valeant has to do a deal to raise cash, buying someone with stock who is dumb enough to take it to get their cash flow. More stupid things have happened. It sure would make Valeant's stock go higher.
Anyway, I can't think of another explanation for the bond market-equivalent stocks to go higher.
And look out, Hershey (HSY) , you better be ready for a higher bid.
I think it happens this weekend.