Guess Who Was Buying HNZ Stock From Its Clients

[jim49er]

An investment bank having a Sell rating on a stock? Usually an unheard of thing: why alienate the management, why prevent future banking business - it's not like banks are ethical creatures - and sure enough in this particular case, the bank in question had sell recos on just 14% of the stocks in its coverage universe. Which begs the question: what does a Sell rating really accomplish? Well, in this case, and in all such cases, it merely provides the firm's prop, pardon flow, traders the opportunity to accumulate the shares its "clients" are advised by the same bank's sellside group to Sell, preferably to the bank in question. Who are we talking about? Take a wild guess...

http://www.zerohedge.com/news/2013-0...ck-its-clients

[Zippyjuan]

Warren Buffet and Berkshire Hathaway are buying Heinz.
http://www.dividend.com/news/2013/he...-hathaway-hnz/

Early on Thursday, worldwide food products maker H.J. Heinz Company (HNZ) announced that it will be acquired by Warren Buffett’s Berkshire Hathaway and private equity firm 3G Capital.

Heinz will be purchased with cash for $72.50 per share, or $28 billion. This represents a 20% premium to Wednesday’s closing price of $60.48.

“The Heinz brand is one of the most respected brands in the global food industry and this historic transaction provides tremendous value to Heinz shareholders,” said Heinz CEO William R. Johnson.

He went on to add, “We look forward to partnering with Berkshire Hathaway and 3G Capital, both greatly respected investors, in what will be an exciting new chapter in the history of Heinz. With Heinz stock recently at an all-time high and 30 consecutive quarters of organic topline growth, Heinz is being acquired from a position of strength. As a private enterprise, Heinz will have an opportunity to drive further growth and advance our commitment to providing consumers across the globe with great tasting, nutritious and wholesome products.”

Berkshire Hathaway and 3G Capital will finance the deal with a combination of cash and debt financing from JP Morgan and Wells Fargo.

The deal is subject to approval by Heinz shareholders and regulatory approval; it is expected to close in the third quarter of 2013.

[jim49er]

Goldman Sachs Group Inc is cooperating with a U.S. Securities and Exchange Commission probe into insider options trading in H.J. Heinz Co before the food company announced it was being acquired, Goldman said on Friday.

Earlier in the day, the SEC filed suit against unknown traders using an account in Switzerland to buy options in Heinz before the company was purchased. The SEC suit does not explicitly name Goldman Sachs but refers to the account in Switzerland as the "GS Account."

http://www.zerohedge.com/news/2013-0...-trading-probe