Campbell Soup (CPB 40.24, +1.64) has jumped 4.3% in pre-market after The New York Post reported that the company is likely to put itself up for sale.
Shares of Campbell Soup have had a difficult time since the stock notched a record high at $67.89 in mid-2016. That rally took place amid general strength in the consumer staples sector, but Campbell could not sustain the strength due to new competition and changing customer preferences.
Since its 2016 high, Campbell has made a couple acquisitions while deploying a cost savings program, but the company's efforts have yet to translate into improved sales.
Campbell CEO Denise Morrison retired last month. Board member Keith McLoughlin is serving as interim CEO while the company conducts an internal review.
The New York Post speculated that Campbell could be acquired by Kraft Heinz (KHC 63.50, +0.29) or General Mills (GIS 45.12, -0.10). A tie-up with one of the industry giants would allow Campbell to undertake even more aggressive cost cutting measures, thus improving profitability. A joint venture would likely be better equipped to handle tariffs on metal imports, something Campbell has identified as an expected source of pressure on margins.
Campbell previously announced it will discuss the results of its internal review in late August.