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+--- Thread: Buffet & 3G Buying Kraft? (/showthread.php?tid=1131)
Buffet & 3G Buying Kraft? - Dividend Watcher - 03-24-2015
Quote:(Reuters) - Kraft Foods Group Inc (KRFT.O), maker of Velveeta cheese and Oscar Mayer meats, is in talks to be acquired by Brazilian private equity firm 3G Capital, a source familiar with the matter told Reuters on Tuesday.
3G teamed up with Warren Buffett's Berkshire Hathaway Inc (BRKa.N) to acquire Ketchup maker H.J. Heinz Co for $23.2 billion two years ago. 3G is now expected to merge Kraft with Heinz if it clinches a deal.
Full article here.
Great, another staple company bought by Buffet. Pretty soon we'll HAVE to sell shares just to live on in retirement because ole Warren doesn't want you to have a penny of his money. I guess that's one way to shake up management to get them to use their brand power to grow a business.
RE: Buffet & 3G Buying Kraft? - navyasw02 - 03-25-2015
(03-24-2015, 11:07 PM)Dividend Watcher Wrote:Quote:(Reuters) - Kraft Foods Group Inc (KRFT.O), maker of Velveeta cheese and Oscar Mayer meats, is in talks to be acquired by Brazilian private equity firm 3G Capital, a source familiar with the matter told Reuters on Tuesday.
3G teamed up with Warren Buffett's Berkshire Hathaway Inc (BRKa.N) to acquire Ketchup maker H.J. Heinz Co for $23.2 billion two years ago. 3G is now expected to merge Kraft with Heinz if it clinches a deal.
Full article here.
Great, another staple company bought by Buffet. Pretty soon we'll HAVE to sell shares just to live on in retirement because ole Warren doesn't want you to have a penny of his money. I guess that's one way to shake up management to get them to use their brand power to grow a business.
I dont understand what you're saying here. KRFT just got a nice little 16% bump based on this news.
RE: Buffet & 3G Buying Kraft? - Dividend Watcher - 03-25-2015
(03-25-2015, 01:29 AM)navyasw02 Wrote: I dont understand what you're saying here. KRFT just got a nice little 16% bump based on this news.
It was half tongue-in-cheek.
The consumer staples sector staples sector is often considered one of the foundations of dividend growth investing. This is because they produce products people will still buy in a recession. KRFT, despite facing some headwinds, has been paying dividends since being split off from MO and at a pretty good yield. Most of the "good" foodie companies left, SJM/HRL/MKC/HSY, have a pretty low yield. SYY has had many headwinds of late.
Buffet bought Heinz a few years ago which was also pretty steady-eddie with their dividends but he's also stated he will never pay dividends from BRK.x.
RE: Buffet & 3G Buying Kraft? - Dividend Watcher - 03-25-2015
More details finally coming. It appears that Kraft Heinz Company will be a public company. Initial reports had it being taken private just as HNZ was. Things are looking a little clearer ... and better.
RE: Buffet & 3G Buying Kraft? - Turvok - 03-25-2015
Yup, it will be a public company and if you're already a holder of KRFT, you will get a nice special dividend of $16.50/share. Buffett likes dividends himself and he mentioned he "will never be out of this company", so I am assuming it will be a decent dividend champ.
RE: Buffet & 3G Buying Kraft? - earthtodan - 03-25-2015
Looks like Buffett is getting into the private equity business through his partnership with 3G, which is a departure from his old ways of not interfering with management and operations of acquirees. There's some commentary on Bloomberg about how 3G leaned up Heinz.
RE: Buffet & 3G Buying Kraft? - navyasw02 - 03-25-2015
(03-25-2015, 08:22 AM)Dividend Watcher Wrote:(03-25-2015, 01:29 AM)navyasw02 Wrote: I dont understand what you're saying here. KRFT just got a nice little 16% bump based on this news.
It was half tongue-in-cheek.
The consumer staples sector staples sector is often considered one of the foundations of dividend growth investing. This is because they produce products people will still buy in a recession. KRFT, despite facing some headwinds, has been paying dividends since being split off from MO and at a pretty good yield. Most of the "good" foodie companies left, SJM/HRL/MKC/HSY, have a pretty low yield. SYY has had many headwinds of late.
Buffet bought Heinz a few years ago which was also pretty steady-eddie with their dividends but he's also stated he will never pay dividends from BRK.x.
Ah ok I gotcha. I missed out on this one, it was on my wishlist for when funds freed up. Bad timing again...
RE: Buffet & 3G Buying Kraft? - Jimbo - 03-26-2015
Awwww, what a miss. I looked at KRFT a bit back, was hoping to pickup on a dip, never quite hit the number I was looking for.
Now with the special dividend and big bump today, Oh my, I missed the boat.