![A deal would would bring together some of the world's best-known brands ranging from Heinz tomato sauce, Oscar Mayer ...](/content/dam/images/g/u/f/u/i/b/image.related.afrArticleLead.620x350.gufwh2.png/1487540441430.jpg)
Kraft Heinz is still hungry for Unilever after the consumer goods giant rejected a surprise $US143 billion ($187 billion) offer.
Unilever said on Friday the bid "fundamentally undervalues" the Anglo-Dutch company, but Kraft says it remains interested in a deal that would would bring together some of the world's best-known brands ranging from Heinz tomato sauce, Oscar Mayer meats and Jell-O to Lipton tea and Dove soap.
A combination of Kraft and Unilever would be the third-biggest takeover in history, according to Thomson Reuters data, and rival Nestle as the world's biggest packaged food maker by sales.
Unilever said it had received an offer of $US50 a share, made up of $US30.23 in cash and the remainder in stock in the new group, representing a premium of 18 per cent.
Kraft, which is controlled by US billionaire Warren Buffett and private equity firm 3G Capita, sought to provide assurances over maintaining Unilever's culture of innovation and acknowledged there were limits to cutting costs, according to people familiar with the approach.
Kraft also offered to keep three headquarters for the combined company in the US, Britain and the Netherlands.
It has until March 17 to make a final bid for Unilever under UK takeover rules.
Unilever shares rose to a record following news of the offer, which analysts at investment bank Jefferies called a "seismic shock", and closed 15 per cent higher, short of Kraft's offer price, with the news lifting shares across the sector.
Kraft Heinz shares rose more than 10 per cent in New York trading, helping lift the Nasdaq to a record high.
The global packaged food industry is grappling with slowing growth, new competition from startup brands, deflation in developed markets and more health- conscious consumers.
Unilever has been hit by a slowdown in emerging markets as well as in its home market, where consumers have been rattled after Britain's decision in 2016 to leave the European Union.
For Kraft, its move comes as low interest rates and cheap debt have fuelled big cross-border deals, making it the busiest start to the year for merger and acquisition activity on record.
Kraft's move comes after Australian dairy processor Bega Cheese announced in January it was buying Vegemite and other Kraft-branded products from Mondelez International in a $460 million deal.
AAP