H.J. Heinz Co. said it agreed to be acquired by Berkshire Hathaway Inc. and private-equity firm 3G Capital for more than $23 billion.And so it goes in a fascist nation. Big business, big investors and big government all working together to bring about a brighter future.
Under the terms of the deal, which has been unanimously approved by Heinz's board, shareholders will receive $72.50 in cash for each share, a 20% premium to Wednesday's close.
Also: Over at Zerohedge, there's this comment: buying a company at a premium to its all time high share price...that is smart investing right there. maybe uncle warren just wanted to bathe in ketchup
Let's check that out.
|Yup. The all-time high for HNZ is about $60. A 20% premium was paid to the Heinz-Kerrys.|
Update: At the WSJ article linked above, commenter Jack Marse points out that HNZ's Price-to-Earnings Ratio is 19. A stolid company like Heinz ought to have one around 12 or so. That means the stock is overpriced at $60. At $72, it's total madness to buy it. Unless there's something else in it to sweeten the deal. Like the ear of the regulators who influence Warren Buffet's investments ...