H.J. Heinz

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Nearest Resistance: $72.50
Nearest Support: $72.40
Catalyst: Acquisition Offer

>>5 Bargain Stocks to Play the Resurgent U.S. Consumer

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's Berkshire 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.

If you liked this article you might like

Under Armour CEO Kevin Plank Expands His Baltimore Empire to Whiskey and a Hotel

Blame the Millennials: Cramer's 'Mad Money' Recap (Wednesday 8/9/17)

Cramer: Follow the Millennials

Talk About the Passion; Survivor Stocks -- Jim Cramer's Top Thoughts