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A big bit of M&A news is coming from Pittsburgh, home to ketchup giant
H.J. Heinz (HNZ). The firm announced today that it would be acquired by a group of investors led by
Warren Buffett'sBerkshire Hathaway (
BRK.B). The deal gives HNZ shareholders $72.50 in cash, a price that's a 20% premium to yesterday's close.
But if you didn't own HNZ last night, don't bother buying it now. As I write, there's a 1-cent risk premium priced into the deal, making the merger arbitrage opportunity completely non-existent for late-to-the-game buyers. This stock isn't likely to deviate from that offer price for the foreseeable future.