Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Beanz Meanz Buffett! Liontrust's Bailey toasts $28bn deal

Beanz Meanz Buffett! Liontrust's Bailey toasts $28bn deal

Liontrust's Stephen Bailey has welcomed Warren Buffett's $28 billion offer for Heinz - a deal which will see two of the world's legendary brands united.

Buffett's Berkshire Hathaway - one of the most recognisable names in investment - wants to take the beans maker private and has already had his cash offer approved by the Heinz board.

Buffett told CNBC that 3G Capital, his partner in the bid, would deal with the operational side of the business, while his role involved the commitment of between $12 billion and $13 billion.

'It's our kind of company,' he told the news station.

Although it is still early days, Buffett's bid for Heinz has been cheered by investors, and in pre-market trade in the US its shares were up by around 19%.

Liontrust's Bailey is one of the few UK investors to hold the stock.  He told Wealth Manager: 'It's obviously good news; at the end of the day this is a company going for around £18 billion in sterling terms for a premium of 20%.'

Bailey said that given Buffett's fondness of big, global brand he was not surprised to see his offer come in for Heinz, but added he will be watching closely the impact of the bid on the wider sector.

Bailey said Kimberly-Clark could well be the next brand snapped up.

'The other names, like Unilever, are too big to swallow,' he explained.

Once the Heinz deal has been finalised, Bailey said he will be looking at firms that offer similar characteristics -visible, global brands offering exposure to emerging market growth.

Bailey, who runs the Citywire Selection Liontrust UK Macro Growth and Liontrust Macro Equity Income funds with Jan Luthman, bought into Heinz at around $47 and like other investors stands to receive $72.50 a share once Buffett's offer is fully approved.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Hendersons' Kerley: investing in Marmite-like China

Hendersons' Kerley: investing in Marmite-like China

Citywire A-rated manager sees higher quality growth originating from China's current reforms.

Play Oil slump opportunities, Japanese recession & a UK bank conundrum

Oil slump opportunities, Japanese recession & a UK bank conundrum

Investment Pulse this week looks at further challenges for the British banking sector, Japan's return to recession and the continuing weakness of brent crude.

Play JPMAM's Georgina Brittain: the best opportunities in mid caps

JPMAM's Georgina Brittain: the best opportunities in mid caps

Brittain discusses where she sees opportunities in mid caps despite rising valuations.

Your Business: Cover Star Club

Profile: The opportunity set that attracted Brett Williams to wealth management

Profile: The opportunity set that attracted Brett Williams to wealth management

Brett Williams is best known for helping to build some of the biggest platforms in the IFA market.He made the move over to wealth management to head SEI’s UK business earlier this year in the belief that this is where the best opportunities now lie.

Wealth Manager on Twitter