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Cereal maker WK Kellogg shares jump 50% on report of possible $3 billion deal with Ferrero

1. WK Kellogg shares rose over 50% on acquisition news. 2. Ferrero is close to a $3 billion deal for WK Kellogg. 3. Kellogg's legacy brands include Froot Loops and Frosted Flakes. 4. Kellanova houses separate snack brands from Kellogg. 5. The deal could finalize as soon as this week.

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FAQ

Why Bullish?

The acquisition news indicates strong market interest, similar to past successful acquisitions in the food sector, like Kraft’s acquisition of Cadbury.

How important is it?

The acquisition of birth brands affects market dynamics, leading to positive investor sentiment.

Why Short Term?

Market reactions are typically immediate; acquisition news usually leads to short-lived spikes.

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