clueless
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Post by clueless on Feb 15, 2013 10:06:55 GMT -5
Does anyone knows what would be the process of taking advantage of Buffet and 3G's offer for Heinz shares? They have offered to buy the shares at $72.50 each and the company will go private.
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Deleted
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Post by Deleted on Feb 15, 2013 10:10:13 GMT -5
If you already own, you dont have to do anything
You can sell now through broker or wait and they will redeem your shares for cash
depends on if you want to get the dollars into a new investment now or later
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bimetalaupt
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Post by bimetalaupt on Feb 17, 2013 2:47:49 GMT -5
If you already own, you dont have to do anything You can sell now through broker or wait and they will redeem your shares for cash depends on if you want to get the dollars into a new investment now or later On the other hand they may raise the offering price...Word on the street....i had this happen to me on several deals... Well it will take me some time to discover what my cost is as it has been on my books for over thirty years... Counter cycle food stocks do well when the market is not!!! Just a thought, BiMetalAuPt |
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bimetalaupt
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Post by bimetalaupt on Feb 17, 2013 2:52:30 GMT -5
Does anyone knows what would be the process of taking advantage of Buffet and 3G's offer for Heinz shares? They have offered to buy the shares at $72.50 each and the company will go private. No... It is a merger with Berkshire Hathaway that is public.. This will increase there income because money only makes you 0.5%+- return and there EBDTA is 8.7%... Great income for Buffet...Now I to pay taxes. BiMetalAuPt |
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Deleted
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Post by Deleted on Feb 17, 2013 3:43:27 GMT -5
from - news.heinz.com/press-release/finance/hj-heinz-company-enters-agreement-be-acquired-berkshire-hathaway-and-3g-capita
Actually, sorry Bruce You are wrong. Heinz will not be remaining Public, nor will Heinz stock continue to trade. After the Deal Closes Heinz will be Private and De-listed.
For anyone looking to skin a few bucks out of this here are some points of note - If you do not Own Heinz but are looking to Buy to Capitalize on the deal -
1) At the Current Market Price of Heinz - $72.28 - there is only a $0.1201 Margin of profit.
Here is how that is reached -
100 Shares X $72.28 = $7,228.00 + $9.99 (trade fee {Ameritrade}) = $7,237.99 / 100 Shares = $72.3799 COST BASIS
$72.50 Price of Deal - $72.3799 = $0.1201 (Margin of Profit) X 100 Shares = $12.01
2) Chance for Arbitrage on the Deal does not really play Unless (A) You could buy 100,000 Shares of Heinz @ Current Market {$72.28} - Yet if you had $772,800 laying around, there are better ideas around to try and skin $12,010 out of -OR- (B) The Market Price of Heinz was to drop $5 or more from Current Market {$72.28}.
So the reality is that -
An Investor that got into Heinz just prior to the Announcement Might do well to just hold until completion, thus saving the Trade Fee for the Exit - Or By Cashing out Now and not looking back.
An Investor who has been in for a good long while - would probably be best served by exiting now while the Iron is "hot", rather than mucking about.
This ship has sailed. Profits are Profits, and right now Investors In Heinz who were in BEFORE the Announcement have just been handed a "Golden Ticket" - BACK UP THE TRUCK, TAKE THE PROFIT AND SMILE - You Just Won 1. 
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bimetalaupt
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Post by bimetalaupt on Feb 17, 2013 13:12:33 GMT -5
DI,
I thought I that it was clear, Berkshire Hathaway is a public and yes 3G is not... HNZ will not be public but this will be accumulative to Berkshire Hathaway bottom line due to the low return on cash held.
Sorry for the confusion,
Bruce
I did use BH for Berkshire Hathaway.. Changed that for clarity.....
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Deleted
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Post by Deleted on Feb 17, 2013 15:19:11 GMT -5
The Confusion started here. The OP was refering to Heinz (Bold). Your original Response -
made it sound as though HNZ would still be a Public Company. My Response was aimed at clarifying this, and sharing my thoughts on the deal. Your Amended Response, makes it clearer that you Meant Berkshire would still be public, whereas Heinz will not. |
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bimetalaupt
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Post by bimetalaupt on Feb 20, 2013 14:58:46 GMT -5
D.I., What was trying to say is the deal making is not over..Not a done deal.. too much underhanded dealing by insiders.
BiMetalAuPt
Investors sue to block Heinz takeoverInvestors are attacking the takeover of H.J. Heinz by Berkshire Hathaway and 3G Capital Management, arguing that the deal undervalues the global food giant and rewards company insiders at the expense of shareholders. Two federal shareholder lawsuits were filed in Pittsburgh, where Heinz is headquartered, on Feb. 15, the day after the takeover was announced for $72.50 per share, a 20% premium to the value of the company's shares at the time. "The proposed acquisition significantly undervalues Heinz," says the civil complaint filed on behalf of shareholder James Clem. "Due in no small part to the company's recent strong growth, just a week ago the stock hit an all-time high of $61 per share." Additionally, the lawsuits allege that the proposed takeover resulted from "an unfair sales process" aimed at locking in famed investor Warren Buffet's Berkshire Hathaway and 3G Capital as the only possible buyers. |
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bimetalaupt
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Post by bimetalaupt on Mar 14, 2013 18:14:58 GMT -5
<abbr data-timestamp="1363150882000" class="time" title="Wed Mar 13 2013 00:01:22 GMT-0500 (CDT)">yesterday at 12:01am</abbr> Post by bimetalaupt on <abbr data-timestamp="1363150882000" class="time" title="Wed Mar 13 2013 00:01:22 GMT-0500 (CDT)">yesterday at 12:01am</abbr> On the other hand if you used the 30 year discounted T-Bond rate of 3.22% and 30 years discounted period the math model produces 204.65 value. (AKA as Intrinsic Stock Value)... B uffet know he is getting a real deal and stock owners of HNZ are getting less then value as derived by 50/50 Expert. Just a thought, BiMetalAuPt 
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Great post Frank!