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Thursday, February 14, 2013

FORTUNE -- Two billionaires -- business and personal friends who live on separate continents -- announced today that their companies would jointly buy H.J. Heinz Co. for $28 billion, including the assumption of $4 billion in debt.

The two dealmakers are Warren Buffett and the Brazilian/Swiss businessman and philanthropist Jorge Paulo Lemann. Buffett's Berkshire Hathaway (BRKA) will own 50% of the venture, and 3G Capital, in which Lemann is a principal, will hold the remainder.

The Lemann group will also play a role in Heinz's management, working with the company's CEO, William R. Johnson.

The all-cash deal will pay Heinz shareholders $72.50 a share, which is just under a 20% premium to Heinz's closing price yesterday, $60.48. Yesterday's price was near the all-time high for Heinz, which has roughly doubled since the stock market's bottom in March, 2009.
What is not being reported is that just newly installed Secretary of State John F-ing Kerry stands to benefit from this sale.   Kerry, who served in Vietnam and resembles Lurch from "The Adam's Family" married the widow Teraaaaaayza Heinz who still owns Heinz stock - the exact number has been hard to locate.    Teraaaaaaaayza had married now room temperature Senator Heinz, descendant of the original Heinz who made this type of paint free Ketchup popular, and she stands to make a fortune from this sale - at a price that is reported to be 20% premium over the market rate.

Warren Buffet is a major contributor to the Obama campaigns and has been used as a political prop for the regime and has long advocated for higher taxes on the rich even though he is fighting paying $1 billion in taxes he owes and who has allowed himself to pay a lower rate in taxes than his secretary.

Update 2/15 - Here is an article that chronicles the limited information about how Kerry and Teraaaaaaaayza will benefit from this deal.

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