Topic: How To Invest

Spinoffs, Takeovers and Special Situations Hotline – Friday, April 27, 2018

Article Excerpt

PINNACLE FOODS INC., $61.19, symbol PF on New York, is a food company whose brands include Duncan Hines, Vlasic, Wish-Bone, Birds Eye and Aunt Jemima. On April 22, hedge fund Jana Partners—an activist investor—announced it had acquired a 9.1% stake in the company. Jana believes Pinnacle Foods can be run more efficiently. It wants to appoint directors to the board who can push for change. That includes the possibility of the company’s outright sale. Potential buyers include Conagra Brands Inc. (symbol CAG on New York) and Kraft Heinz Co. (symbol KHC on Nasdaq). In fact, Conagra held discussions with Pinnacle last year about buying the company. In 2014, Hillshire Brands Co. nearly bought Pinnacle, but Tyson Foods jumped in and bought Hillshire, canceling the Pinnacle deal. The most attractive part of Pinnacle is its Birds Eye frozen foods brand. That label continues to see strong grow, with lots of new vegetable products. Both Conagra and Kraft also have large frozen food businesses. For the…