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.

Related Fund Managers

Stephen Bailey
Stephen Bailey
52/78 in Equity - UK Equity Income (Performance over 3 years) Average Total Return: 48.44%
Jan Luthman
Jan Luthman
53/78 in Equity - UK Equity Income (Performance over 3 years) Average Total Return: 48.44%
Citywire TV
Citywire TV
Citywire TV
Play Where A-rated Pattullo is finding the best bond opportunities

Where A-rated Pattullo is finding the best bond opportunities

Henderson Global Investors head of retail fixed income explains how he is managing his fund against the surprise current monetary policy divergence.

1 Comment Play Taxicab Tenner: Allianz Global Investors' AA-rated Simon Gergel

Taxicab Tenner: Allianz Global Investors' AA-rated Simon Gergel

Our much anticpated new series is here! We hand a black cab driver a tenner and grill the manager of the 125-year Merchants trust until the meter runs out.    

Play Europe bulls, a retail boost and why a little inequality can be a good thing

Europe bulls, a retail boost and why a little inequality can be a good thing

This week’s Investment Pulse looks at whether investors should be bullish on Europe, the surprise rise in UK retail sales and if a little inequality is a good thing.

Your Business: Cover Star Club

Profile: meet the duo at the heart of Hargreave Hale's succession plan

Profile: meet the duo at the heart of Hargreave Hale's succession plan

For the first time in the company's history a non-Hargreave is now at the head of the north west broker and asset manager

Wealth Manager on Twitter