During December 2012, Jorge Paulo Lemann, a co-founder and partner at 3G, proposed to Warren Buffett that 3G and Berkshire Hathaway get H. J. Heinz Company. Buffett and Lemann, who had understood each other for several years, jointly concluded that Heinz turnaround had remained successful and that there was considerable potential for sustained international growth. 3G informed Heinz CEO William Johnson that Berkshire Hathaway and it were interested in jointly acquiring his firm. After much discussion, its advisers and the Heinz board informed 3G that without better monetary terms and conditions, they wouldn't continue to talk about the possibility of an acquisition.
But was this, in fact, a fair deal? And what might be the future outcomes for management, shareholders, employees, citizens of Pittsburgh, the location of head office of the company? Lastly what role was assigned to activist investors in bringing Heinz to this deal phase?
PUBLICATION DATE: December 03, 2014 PRODUCT #: KEL848-PDF-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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