Reuters - Video

EDITION: U.S. | U.K. | IN

Finance Videos

Breakingviews: Secret sauce in Heinz deal

Thursday, February 14, 2013 - 03:13

Feb 14 - Rob Cox talks with Breakingviews columnists about the rationale and structure of the $28 billion takeover of Heinz by private equity firm 3G Capital and Warren Buffett's Berkshire Hathaway.

▲ Hide Transcript

View Transcript

Big deal in the -- space the biggest deal you could ever have an economist space probably. At 28 billion dollar takeover of -- by Warren Buffett and his new Brazilian friend's three G private equity group. What's going on it's like mustard is mixed in with the catch up. On top of the burger here I mean you don't usually see private equity and their -- side with with one but. Put them in the -- and we -- -- without slamming these big deals we have one private equity are teaming up -- and pressure that people deep -- and it was here as well. And Warren Buffett is in that position for starters and just at a lot of cash needs to do something that he said he was at 5050 if it's twentieth doing an equity. But Berkshire also trying in about eight going out her stock right so they say he's he's gonna -- is actually yet. Its debts at the -- it is nice to eat at the twenty billion dollar equity tech is that right that they're they're splitting. OK but what purchased. OK so all right all right I got it. So what what what the three -- guys bring table. And I think you know again I think it's a fit for their other holdings and they have Burger King. That kind of good -- trusted I don't I think that I'm pretty sure -- -- hurricane diocese I was -- -- -- -- that owns ovals on the board of -- Indian. -- my senses and it away its cover for Warren Buffett to bring in a different management approach to -- and if you think about it. You that I'm not sure what the upside for -- as a means that while the couple of others but you can squeezed. Pardon the pun that you could squeeze the profits. All the there's also an -- emerging market theory here right -- and expand I mean obviously -- has -- -- -- states. Big -- of consumers here. But they're trying to push them both -- and other stuff -- further abroad presumably these guys from Brazil have some good sense of how to do that the government here. On how to hit the emerging markets and open up there and immediate there may be something. But ultimately though aren't they can get out of it -- mean if they're private equity firm that maybe I mean I don't know what they're there stuff you'd say but I but you would expect unlike say Berkshire Hathaway. They would be more active so. I mean does Warren -- then by the grass stores today. I mean what's the play it right at and that. Well -- have that built -- on a very structured but it seems like a natural. Exit eventually it's at least one already sort of available exit too bad news for offered to buy the rest of it in five years. That so they have a way put options a question asked if there was. And -- are right now who everyone on Wall Street got a piece of the steel what was the instinct -- follows the trend we've seen two boutiques one on each side with a -- have all that not to speak but an independent advisors. They interview stirred up close relationship with three G right Sadr viewed Blair have front he's been working with Heinz forever -- -- like. Debt and you've got one -- practically sighed in JPMorgan on one side while our Internet that half the -- advise if there was just so happens to be a core holding of Warren Buffett I think they got on the ticket. All right well thanks a lot guys we'll be back for more breaking news tomorrow.

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

Breakingviews: Secret sauce in Heinz deal

Thursday, February 14, 2013 - 03:13

Top News »

Retirement »

Back to work- in retirement Back to work- in retirement

Wed, Oct 15, 2014 - (2:09)

Investing 201 »

Bond investors brace for the end of Fed stimulus Bond investors brace for the end of Fed...

Fri, Oct 10, 2014 - (4:03)

Arian Foster = BlackBerry? Arian Foster = BlackBerry?

Fri, Oct 25, 2013 - (3:16)

Don’t miss these red flags for IPOs Don’t miss these red flags for IPOs

Thu, Oct 10, 2013 - (2:34)

Copycat currency trading Copycat currency trading

Wed, Oct 02, 2013 - (2:28)

When to dump a winner When to dump a winner

Tue, Sep 24, 2013 - (1:55)

Where gold might again attract Jim Rogers Where gold might again attract Jim Rogers

Thu, Sep 19, 2013 - (2:05)

Why savings interest rates won't budge Why savings interest rates won't budge

Fri, Sep 13, 2013 - (2:09)

Buy local? ETFs try the trend Buy local? ETFs try the trend

Thu, Sep 05, 2013 - (2:42)

Money Clip »

Will Apple Pay transform mobile payments? Will Apple Pay transform mobile payments?

Thu, Oct 16, 2014 - (2:45)

3 things to do before disaster strikes 3 things to do before disaster strikes

Wed, Sep 18, 2013 - (1:39)

Your must-do money list Your must-do money list

Wed, Sep 11, 2013 - (1:24)

The worst "best" financial advice The worst "best" financial advice

Wed, Sep 04, 2013 - (1:42)

Forget gold: The case for REITs Forget gold: The case for REITs

Fri, Apr 26, 2013 - (1:19)

3 rules for buying a house now 3 rules for buying a house now

Thu, Apr 18, 2013 - (1:39)

Reuters Investigates »

Re-homing victim: "I could have been dead" Re-homing victim: "I could have been dead"

Wed, Feb 19, 2014 - (8:24)

Cops and loggers in the Amazon rainforest Cops and loggers in the Amazon rainforest

Fri, Jan 10, 2014 - (4:01)

"Passed around like a dog" "Passed around like a dog"

Thu, Aug 29, 2013 - (6:32)

Adopted, then abandoned online Adopted, then abandoned online

Thu, Aug 29, 2013 - (13:21)

How the DEA keeps its secrets secret How the DEA keeps its secrets secret

Mon, Aug 05, 2013 - (1:36)

How education lost its role as the great equalizer - Reuters Investigates How education lost its role as the great...

Mon, Dec 17, 2012 - (7:52)

Jihad Jane: From abused child to American jihadist - Reuters Investigates Jihad Jane: From abused child to American...

Sat, Dec 08, 2012 - (10:01)

Jihad Jane: The order to kill - Reuters Investigates Jihad Jane: The order to kill - Reuters...

Sun, Dec 09, 2012 - (10:39)

Moving Pictures »

Dance of the northern lights Dance of the northern lights

Mon, Oct 20, 2014 - (1:08)

Images of September Images of September

Wed, Oct 01, 2014 - (1:00)

Still missing – MH370 Still missing – MH370

Fri, Sep 05, 2014 - (2:05)

Burning Together Burning Together

Mon, Sep 01, 2014 - (2:23)

Mending dolls, teddies and hearts Mending dolls, teddies and hearts

Fri, Aug 22, 2014 - (3:12)

Images of August Images of August

Fri, Aug 29, 2014 - (1:00)

"Old timers" sail the Chesapeake Bay "Old timers" sail the Chesapeake Bay

Mon, Aug 11, 2014 - (2:27)

Burned memories Burned memories

Fri, Aug 08, 2014 - (3:02)

Images of July Images of July

Thu, Jul 31, 2014 - (1:20)

World Cup: passion on the pitch World Cup: passion on the pitch

Fri, Jul 11, 2014 - (1:00)