Humans are nothing if not pattern recognition machines. Even in random data, we see patterns. So Bloomberg’s report that Jorge Paulo Lemann’s 3G is expected by some to be ready to do another large deal is no surprise. Never mind that the supposition is based on a mere two data points: two years separated 3G’s 2013 acquisition of… Read More »
Yahoo (YHOO) had a tough year in 2015. The core business continued declining, key employees fled and its plans to deliver shareholder value by spinning off its Alibaba (BABA) stake into a standalone company was effectively derailed by the IRS. Unfortunately for the company and its beleaguered CEO Marissa Meyer, the start of 2016 isn’t looking much better… Read More »
A few links for another glorious summer Friday: The activist investors at CDK Global (CDK) have a new plan to keep the star spinoff stock rising: find a buyer. The company is apparently working with Morgan Stanley to sell itself and private equity firms are apparently the target audience. That is somewhat surprising because a PE deal for… Read More »
Poor Irene Rosenfeld. The former CEO of Kraft Foods was badgered by Nelson Peltz’s Trian Group into breaking up her empire in 2012 into the slow growing, North American grocery business, Kraft Foods Group, and the international snack food company Mondelez International (MDLZ). She remained at the top of Mondelez and also (rightfully) took a lot of heat for the… Read More »
Last year, Gannett (GCI) finally decided to follow the pack and spin off its publishing assets into a standalone company. Given its storied history, the publishing group will retain both the Gannett name and GCI ticker, so the corporate braintrust had the opportunity to pick an exciting original name for its new digital and broadcasting business. Most people… Read More »
Less than 3 years after being spun off from then Kraft Foods (now the ill-named Mondelez [MDLZ]), Kraft Foods Group (KRFT) has agreed to a merger with Heinz. Heinz was taken private in 2013 by Brazilian private equity firm 3G capital, with backing from Warren Buffett’s Berkshire Hathaway(BRKA,BRKB). Berkshire Hathaway and 3G will be injecting an additional $10 billion… Read More »
What is one thing that both real estate brokers and shareholders really love? A BIDDING WAR! That’s right, M&A is heating up and surprisingly it’s a packaged meat company that is at the heart of the recent excitement. The action all started a few weeks ago when Hillshire Brands (HSH) announced that it would acquire Pinnacle Foods(PF) at… Read More »
News of Nelson Peltz’s Trian Fund Management ridding itself of all Kraft related positions turned out to be off…very off. In an amended Q4 13F filing released last week, the hedge fund revealed a large stake of over 19 million shares (a bit more than $600m worth) in Kraft’s international snacks spinoff Mondelez International (MDLZ). There was still… Read More »
13F season is always fun as it provides a rare (albeit delayed) glimpse into the thinking of large money managers and hedge funds. Of course, due to the significant time lag (~45 days), the exclusion of certain securities (shorts, derivatives etc.) and varying investment strategies and holding periods, the usefulness of such data is…questionable in many cases. Not… Read More »
Who needs the Dow Jones Industrial Average anyways? Shortly after parent company Kraft Foods (KFT) got the boot from the DJIA, it was announced that post spinoff, the Kraft Foods Group (the North American Grocery spinoff) will become a member of the S&P 500. Kraft will replace coal producer Alpha Natural Resource (ANR) which just happens to be one of the worst… Read More »
Well that was quick. In what looks to be the briefest stint in modern history (maybe even of all time?), Kraft Food’s (KFT) days as a member of the Dow Jones Industrial Average are coming to an end. A mere four years after usurping AIG’s (AIG) spot in the index, the food conglomerate will be replaced by the… Read More »
It only took about a year since the idea was first publicly floated, but Kraft Food’s (KFT) board of directors formally approved the spinoff of its North American grocery business last week. The tax-free spin is expected to be completed after the close on October 1st and shareholders of KFT will receive 1 share of the new Kraft Foods… Read More »
Rejoice, oh lovers of oddly named companies. Prepare, chronic mis-pronouncers. The North American Grocery business of the crafty Kraft(KFT) will be spun off and trade under the new ticker KRFT. The stub will be renamed Mondelez(this rhymes with Oh Puhhleez) International, despite our valiant efforts to stop this awful name, and trade under the ticker MDLZ. Speaking of… Read More »
We have been pretty outspoken in our dislike of Kraft’s (KFT) name choice of Mondelez International for its global snacks spinoff. Unfortunately, I wasn’t able to voice my displeasure at today’s shareholder meeting because despite being an avid consumer of Kraft products, I don’t actually own any shares. It wouldn’t have mattered though as over 90% of voting… Read More »
Kraft Foods (KFT) has filed its initial Form 10 detailing the separation of its North American grocery business, which will retain the Kraft Foods Group name, from its global snacks business (soon to be known as Mondelez International). While the snacks business is quite larger with sales of ~$35b and a popular portfolio of brands including Oreos and… Read More »