Topic: Growth Stocks

Wall Street Stock Forecaster Hotline – Friday, March 27, 2015

Article Excerpt

PLEASE NOTE: Due to the Good Friday holiday, our next Hotline will go out on Thursday, April 2, 2015. KRAFT FOODS GROUP INC., $89.10, Nasdaq symbol KRFT, jumped 40% this week after agreeing to merge with rival food maker H.J. Heinz. The new firm—The Kraft Heinz Company—will be North America’s third-largest food and beverage company and fifth-biggest in the world. It will have $28 billion of annual revenue, including eight brands with over $1 billion in yearly sales. Under the deal, Kraft shareholders will get one share of the new firm for each share they currently hold. They will also receive a special dividend of $16.50 a share. Kraft investors will own 49% of the combined company, while Heinz’s owners—Brazilian private equity firm 3G Capital and Berkshire Hathaway, the holding company controlled by billionaire investor Warren Buffett—will own the remaining 51%. Assuming Kraft shareholders approve, Heinz expects to close the deal in the second half of 2015. The new firm will keep paying Kraft’s current…