Well have more on american in a moment, but we begin tonight with buffett and that surprising megafood deal. The billionaire investor is teaming up with the billionaire owners of 3g capital to buy the ketchup maker for 28 billion. The private equity group and Buffetts Berkshire hathaway are paying 72. 50 a share in cash. Thats a 20 premium over heinzs Closing Price yesterday. Ruben ramirez reports. Reporter the oracle of omaha now has a new title ketchup king. For the first time, Warren Buffett, whos shied away from working with private equity partners, is teaming up with 3g capital in a 28 billion deal close to 24 billion of that in cash and the assumption of 4 billion in debt to take h. J. Heinz private. Warren buffett is starting to get older at this point, and, in this case, hes having 3g handle the operational side of this transaction. Reporter while buffetts age may be advancing, hes still very interested in doing deals in wellknown brands. Its not the first time buffett has part
So it doesnt look to, like, buy then sell in a few years like a lot of private equity firms. Reporter 3g is run by jorge paulo lemann. He and buffett both served on the board of gillette. 3g capital snapped up burger king two years ago. The fast food chain has been aggressively overseas. Analysts say we could see more wellestablished u. S. Brands look to do deals with partners in fastgrowing emerging markets as a way to spark growth. Ruben ramirez, n. B. R. , new york. Susie steve farley is familiar with Warren Buffetts recipe for success. His new York Investment firm, farley capital, has held Berkshire Hathaway stock for two decades. So, steve, we know that Warren Buffett likes bargains. Hes a penny pincher, selfdescribed. And here hes paying a 20 premium for h. J. Heinz. Are you concerned hes overpaying . Im not. I think first of all, the way buffett, what he is concerned about is the price hes paying for the value hes getting. Its really irrelevant to him what premium he is paying t
On this valentines day. Their combination means the field of major u. S. Carriers will shrink by one. These jetliners sporting shiny new paint jobs are among the roughly 900 planes in the American Airlines fleet and theyre about to be joined by the 622 planes currently flying for u. S. Airways. The price tag for the deal 11 billion. Creditors of americans bankrupt Parent Company a. M. R. Will own 72 of the combined airline. The merger affects some 187 million passengers who fly the two airlines annually. I grew up on u. S. Airways. Brown as well as more than 100,000 employees. Our best goal Going Forward is to make it the biggest, strongest airline in the country, and i suppose thats about to happen. Brown the combined company will keep the american name and headquarters in fort worth, texas. But it is u. S. Airways c. E. O. Doug parker who will run it. His counterpart tom horton at american will serve as chairman, but bow out after the transition the two are friends who started their
So it doesnt look to, like, buy then sell in a few years like a lot of private equity firms. Reporter 3g is run by jorge paulo lemann. He and buffett both served on the board of gillette. 3g capital snapped up burger king two years ago. The fast food chain has been aggressively overseas. Analysts say we could see more wellestablished u. S. Brands look to do deals with partners in fastgrowing emerging markets as a way to spark growth. Ruben ramirez, n. B. R. , new york. Susie steve farley is familiar with Warren Buffetts recipe for success. His new York Investment firm, farley capital, has held Berkshire Hathaway stock for two decades. So, steve, we know that Warren Buffett likes bargains. Hes a penny pincher, selfdescribed. And here hes paying a 20 premium for h. J. Heinz. Are you concerned hes overpaying . Im not. I think first of all, the way buffett, what he is concerned about is the price hes paying for the value hes getting. Its really irrelevant to him what premium he is paying t
Extraordinarily well, but it is not a reflection of america. Stuart they are not bringing that money back to america. Charles let them bring back 400 million. Then we will get a 300 billion stimulus that no one watching this show has to pay for. Stuart well said. Our time is up. It is now time for Dagen Mcdowell and connell mcshane. Connell good morning. Dagen we bring you the comments on spending with. Connell 11 billion. Executives promising a better experience for flyers. Dagen i say bring it. A terrible story comes home to ports. The Carnival Cruise ship will dock today in mobile, alabama. The route has been delayed until this evening. Connell people cannot catch a break. Top of the hour. Stocks now and every 15 minutes. Nicole petallides at the new york Stock Exchange. It is not monday, but there are a lot of mergers to talk about. Nicole the first is in airline deal. It was highly anticipated that u. S. Airways and American Airlines would merge. First lets hit heinz. I am going t