GO
Loading...

Breaking News from CNBC's Andrew Ross Sorkin: Berkshire Hathaway & 3G Buying Heinz for $72.50 a Share, $28 Billion

When: Today, Thursday, February 14th at 7:45AM ET

Where: CNBC's "Squawk Box"

Following is the unofficial transcript of breaking news from CNBC's Andrew Ross Sorkin today on "Squawk Box" at 7:45AM ET. Here is an embeddable link to the video: http://video.cnbc.com/gallery/?video=3000148042.

All references must be sourced to CNBC.

ANDREW ROSS SORKIN: WE HAVE SOME BREAKING NEWS TO BRING YOU, SOURCES TELLING CNBC THAT BERKSHIRE HATHAWAY AND 3G ARE PREPARED TO BUY HEINZ FOR $28 BILLION. THAT IS A TOTAL OF $72.50 A SHARE, THAT'S WHAT OUR SOURCES ARE TELLING US. IT'S A 20% PREMIUM--

JOE KERNEN: ARE YOU KIDDING ME?

SORKIN: I'M NOT KIDDING YOU.

KERNEN: SHUT THE FRONT DOOR, THIS REALLY IS—BERKSHIRE HATHAWAY IS BUYING HEINZ?

SORKIN: THIS IS HAPPENING. BERKSHIRE HATHAWAY AND 3G ARE BUYING HEINZ $72.50 A SHARE, IT'S A 20% PREMIUM. GIVE YOU SOME OF THE DETAILS, BERKSHIRE IS GOING TO—

KERNEN: AND THIS IS NOT OUT?

SORKIN: THIS IS NOT OUT YET. BERKSHIRE IS GOING TO BE PUTTING IN $4.5 BILLION OF EQUITY, 3G IS ALSO GOING TO BE PUTTING IN $4.5 BILLION OF EQUITY, THERE'S AN ADDITIONAL $9 BILLION OF PREFERRED THAT ARE GOING TO BE JOINING THIS. WE SHOULD BE HEARING OFFICIALLY ABOUT THIS TRANSACTION PERHAPS IN THE NEXT HALFHOUR.

KERNEN: LAST TIME HE WAS ON HE SAID HE—AND YOU KNOW WHAT WHY DIDN'T WE THINK HEINZ. I KIND OF DID I THINK—

BECKY QUICK: FROM HIS ELEPHANT HUNTING?

KERNEN: HE WAS GOING TO ELEPHANT HUNTING. THIS IS RIGHT UP HIS ALLEY IN TERMS OF CONSUMER PRODUCTS

QUICK: HEINZ IS NOT ONLY KETCHUP, I'M JUST LOOKING THROUGH HERE, THEY ALSO MAKE ORE-IDA, ALL OF THE POTATOES THAT GO ALONG WITH THOSE THINGS. HEINZ BEANS, BUT HEINZ THE KETCHUP, I MEAN IT'S HARD TO THINK OF A SECOND PLACE BEHIND—

KERNEN: HE LOVES BIG ACQUISITIONS. HE MAKES ONE EVERY COUPLE YEARS. WHAT WAS HIS LAST ONE?

QUICK: BURLINGTON NORTHERN

JACK WELCH: BURLINGTON NORTHERN

QUICK: BURLINGTON WAS ABOUT $34 BILLION ACQUISITION. SO THAT WAS A MASSIVE, MASSIVE ONE. THIS ONE'S HUGE TOO AT 28.

SORKIN: $28 BILLION THAT'S A BIG DEAL. ALSO WORTH NOTING 3G IS A CONSORTIUM OF BRAZILIAN INVESTORS. YOU MAY REMEMBER 3G BECAUSE THEY PARTICIPATED IN BUYING BURGER KING ABOUT 2 YEARS AGO. SO A BIG DEAL—WE HAVE A LOT OF BIG DEALS TODAY.


About CNBC:

With CNBC in the U.S., CNBC in Asia Pacific, CNBC in Europe, Middle East and Africa, CNBC World and CNBC HD , CNBC is the recognized world leader in business news and provides real-time financial market coverage and business information to approximately 390 million homes worldwide, including more than 100 million households in the United States and Canada. CNBC also provides daily business updates to 400 million households across China. The network's 16 live hours a day of business programming in North America (weekdays from 4:00 a.m. - 8:00 p.m. ET) is produced at CNBC's global headquarters in Englewood Cliffs, N.J., and includes reports from CNBC News bureaus worldwide.

CNBC also has a vast portfolio of digital products which deliver real-time financial market news and information across a variety of platforms. These include CNBC.com, the online destination for global business; CNBC PRO, the premium, integrated desktop/mobile service that provides real-time global market data and live access to CNBC global programming; and a suite of CNBC Mobile products including the CNBC Real-Time iPhone and iPad Apps.

Members of the media can receive more information about CNBC and its programming on the NBC Universal Media Village Web site athttp://www.nbcumv.com/mediavillage/networks/cnbc/