- By reading through the SEC filings revealed Friday, the merger proxy for Kraft Foods Group Inc. and H.J. Heinz Co. says much about what could happen in the final deal and what has changed since the deal was initially proposed.
- While the initial $10 billion equity investment figure stayed the same, by a couple of offers after the initial proposal, the latest deal increased a special dividend for Kraft shareholders from $12.50 to $16.50 per share and increased Kraft shareholders' stake in the combined company from 47% to 49%.
- While Kraft reportedly contacted two other companies about separate deals, it's not likely that anyone will be biting. Kraft also decreased its termination fee to Heinz.
One interesting factor of this deal is how quickly it came together. According to The Wall Street Journal, Heinz chairman Alexandre Behring first proposed a meeting with Kraft's newly appointed CEO and chairman John Cahill on Jan. 20.
One week later, Cahill met with Kraft's investment bankers, Centerview Partners, to determine how Kraft would perform as a standalone entity. He then met with Behring the next day. The day after that, Jan. 29, Behring announced in a meeting with Centerview that 3G Capital and Heinz would be making an offer for Kraft.
Just about two months after Behring's phone call to Cahill, the companies announced the deal, and the media frenzy began.