This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Heinz Mulls Buy of Pfizer Baby Formula Business: Report (Update 1)

Corrected quote from analyst Erin Lash in third paragraph

NEW YORK ( TheStreet) -- Heinz (HNZ) may make a run for all or part of pharmaceutical company Pfizer's (PFE - Get Report) baby formula business, according to The New York Post.

The Post said Pfizer accepted first-round bids for the division over the holidays. The newspaper referred to the potential purchase as a "$9 billion transformative deal."

Morningstar analyst Erin Lash also said it would be a "transformative" deal for Heinz if the company acquires all of Pfizer's infant nutrition business, provided a deal happens at all.

"Heinz has placed an emphasis on growing its presence in emerging and developing markets, but up to now has primarily utilized organic growth or has pursued smaller bolt-on deals to broaden its distribution network," Lash said.

Some of Pfizer's baby nutritional brands include Progress, Progress Gold and Promise Gold.

A Pfizer spokeswoman said the company's exploration of strategic initiatives for this division is ongoing.

"We're currently pursuing the activities associated with evaluating all options, including sale, spin-off or other transaction. However, no decisions have been made at this point," the spokeswoman wrote. "We expect to be in a position to announce any decision in 2012, and continue to expect to complete any transactions that may result from this decision between July 2012 and July 2013."

A Heinz spokesman declined to comment.

Shares of Heinz fell 17 cents to $53.07 in Tuesday's trading, while Pfizer's stock rose 10 cents to $21.92.

-- Written by Alexandra Zendrian in New York.

>To contact the writer of this article, click here: Alexandra Zendrian

>To submit a news tip, send an email to:

>To follow the writer on Twitter, go to Alexandra Zendrian.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
HNZ $72.49 0.00%
PFE $32.71 0.00%
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs