Martinne's Feed
Feb 15, 2013

Buffett, Brazil’s 3G team up for $23 billion Heinz buyout

By Ben Berkowitz and Martinne Geller

(Reuters) – Warren Buffett and Brazilian financier Jorge Paulo Lemann are teaming up to buy ketchup maker H.J. Heinz Co for $23.2 billion, in what could be the first step of a wave of mergers for the food and beverage industry.

Analysts and people close to the deal said Heinz could be a good starting point to consolidate similar staple food companies, particularly given the larger ambitions of Lemann’s private equity firm 3G Capital.

Feb 14, 2013

Burger King’s Brazilian owner at heart of all-American Heinz deal

By Olivia Oran and Martinne Geller

(Reuters) – At the heart of the $23 billion buyout of iconic American company H.J. Heinz Co is a low profile Brazilian group founded by a banker-turned-beer magnate.

3G Capital, which teamed up with Warren Buffett’s Berkshire Hathaway Inc for the deal, has aggressively eyed U.S. consumer companies over the last several years.

Feb 14, 2013

Buffett pulls off fresh blockbuster with $23 billion Heinz deal

By Ben Berkowitz and Martinne Geller

(Reuters) – Warren Buffett’s Berkshire Hathaway and private equity firm 3G Capital will buy ketchup and baby food maker H.J. Heinz Co for $23.2 billion in cash, a deal that combines 3G’s ambitions in the food industry with Buffett’s hunt for growth.

Including debt assumption, Heinz valued the transaction, which it called the largest in its industry’s history, at $28 billion. Berkshire and 3G will pay $72.50 per share, a 19 percent premium to the stock’s previous all-time high.

Feb 14, 2013

Oreo maker Mondelez results weaker-than-expected; shares fall

Feb 13 (Reuters) – Mondelez International Inc
reported weaker-than-expected revenue for the second time in its
two quarters as an independent company, and its shares fell 3.7
percent in afterhours trade.

The company, which makes Trident gum, Oreo cookies and
Cadbury chocolate, saw revenue rise 3.7 percent excluding any
impact from acquisitions, divestitures and other things. That is
slightly weaker than its forecast calling for mid-single-digit
growth, which the company said would have been at least 4

Feb 12, 2013

Harris Teeter exploring options: sources

By Martinne Geller and Olivia Oran

(Reuters) – Harris Teeter Supermarkets Inc (HTSI.N: Quote, Profile, Research, Stock Buzz) is exploring strategic options including a possible sale, two sources familiar with the matter said on Tuesday.

The company, which has a market capitalization of over $1.8 billion, is being advised by JP Morgan, said the sources, who declined to be named because the process is confidential.

Feb 12, 2013

Coca-Cola revenue misses Street view; shares slip

By Martinne Geller

(Reuters) – Coca-Cola Co (KO.N: Quote, Profile, Research, Stock Buzz) reported fourth-quarter revenue slightly below analysts’ estimates, hurt by a weaker-than-expected performance in Europe.

The world’s largest soft drink maker, with brands such as Sprite, Fanta and Minute Maid, on Tuesday said revenue rose 4 percent to $11.46 billion. Analysts were expecting $11.53 billion, according to Thomson Reuters I/B/E/S.

Feb 9, 2013

Constellation wants in on U.S. beer suit to protect Crown

NEW YORK (Reuters) – Constellation Brands Inc (STZ.N: Quote, Profile, Research, Stock Buzz) asked to be joined as a defendant in the U.S. government’s lawsuit to block Anheuser-Busch InBev’s (ABI.BR: Quote, Profile, Research, Stock Buzz) proposed takeover of Corona beer maker Grupo Modelo (GMODELOC.MX: Quote, Profile, Research, Stock Buzz), seeking to protect its own interests in the mega merger.

As part of AB InBev’s plan to buy the half of Modelo it does not own for $20.1 billion, Modelo would sell its half of the Crown Imports joint venture to its partner, Constellation, for $1.85 billion.

Feb 8, 2013

Constellation, Crown want in on U.S. antitrust beer suit

By Martinne Geller

(Reuters) – Constellation Brands Inc (STZ.N: Quote, Profile, Research, Stock Buzz) and U.S. beer distributor Crown Imports filed a court motion asking to be joined as defendants in the U.S. government’s complaint against Anheuser-Busch InBev’s (ABI.BR: Quote, Profile, Research, Stock Buzz) proposed takeover of Grupo Modelo (GMODELOC.MX: Quote, Profile, Research, Stock Buzz).

The Motion to Intervene, filed in U.S. District Court for the District of Columbia, and made public on Friday, seeks to allow Constellation and Crown direct access to the legal proceedings as neither company was named in the complaint, but each is directly affected by its outcome.

Feb 7, 2013

Green Mountain shares fall on weak sales outlook

Feb 6 (Reuters) – Green Mountain Coffee Roasters Inc
forecast sales growth for the current quarter that is
slightly lower than analysts expected as retailers work through
unsold inventory of its products after a slower-than-expected
holiday season.

The maker of the Keurig single-cup coffee brewer and K-Cups
that go with it also reported first-quarter earnings that were
11 cents per share better than analysts expected. It raised its
full-year outlook, but only by 8 cents per share in a sign of
weakening expectations for later quarters.

Feb 7, 2013

Herbalife fights pyramid charge with distributor data

NEW YORK (Reuters) – Herbalife Inc (HLF.N: Quote, Profile, Research, Stock Buzz) disclosed more information on Wednesday about how much its U.S. distributors earn, looking to provide more clarity as it defends its business model from critics like billionaire hedge fund manager Bill Ackman.

The greater detail about 2012 distributor compensation follows sustained criticism by Ackman, who has a $1 billion bet against the company and alleges that its direct-selling model is nothing more than a “well-managed pyramid scheme.”