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Is Mead Johnson Preparing To Be Acquired?

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Mead Johnson Nutrition (NYSE: MJN) executives may be preparing for the company to be acquired.

As pointed out by JP Morgan, Mead Johnson changed the language for its incentive plan in an 8-K filing in a way that would give Mead Johnson employees more control and financial reward if the company is taken over.

The filing from June 13 states, “if a qualifying termination occurs following a change in control, the participant is entitled to receive a target performance share payout for any performance year that has not yet commenced at the time such participant’s termination date occurs.”

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The change in control plan includes top executive and other senior executives appointed by the CEO.

Because merger and acquisition activity has been so intense in 2014, this raises the speculation that a takeover of Mead Johnson is likely. Potential suitors could include companies that specifically produce pediatric food products, such as Danone (OTC: DANOY), or other major food producers that could leverage economies of scale.

Shares of Mead Johnson are up over one percent to $90.27.

Latest Ratings for MJN

DateFirmActionFromTo
Jan 2015Morgan StanleyMaintainsEqual-weight
Jan 2015NomuraInitiates Coverage onBuy
Oct 2014Credit SuisseMaintainsOutperform

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