Questions for Heinz
1. What criteria should Heinz use to select its investment bankers? What
services may Heinz need from them in support of this transaction?
2. The bidders (Heinz and Berkshire Hattaway) selected three banks with very
different profiles: J P Morgan Chase (a large banking conglomerate), Wells
Fargo (a commercial and corporate bank) and Lazard (a pure-player
advisory investment bank). Why? Are these banks complementary? Which
areas of the transaction could each one of them specialise on?
3. What was the role played by shareholder activist Nelson Peltz in triggering
this transaction? How may investment banks help the management of
companies such as Heinz against this activists?
4. What is the logic of the "go shop" process described in the case? How may /
should investment banks help in such process?
5. Present your valuation of Heinz as a standalone company.
6. Discuss the form of payment used (cash). Would a strategic (i.e. non-
financial) buyer pay 100% cash? Is the role of investment banks involved
different in all-cash and all-stock transactions?
7. As an investment bank advising Heinz's board of directors would you consider
the offer made by the buying group fair for the company's shareholders? Add
any additional calculations and comparisons you may need.
Format: typical investment bank report
Deadline: June, 4, 8am
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Questions for Heinz 1. What criteria should Heinz use to s.docx
1. Questions for Heinz
1. What criteria should Heinz use to select its investment
bankers? What
services may Heinz need from them in support of this
transaction?
2. The bidders (Heinz and Berkshire Hattaway) selected three
banks with very
different profiles: J P Morgan Chase (a large banking
conglomerate), Wells
Fargo (a commercial and corporate bank) and Lazard (a pure-
player
advisory investment bank). Why? Are these banks
complementary? Which
areas of the transaction could each one of them specialise on?
3. What was the role played by shareholder activist Nelson Peltz
in triggering
this transaction? How may investment banks help the
management of
companies such as Heinz against this activists?
4. What is the logic of the "go shop" process described in the
case? How may /
2. should investment banks help in such process?
5. Present your valuation of Heinz as a standalone company.
6. Discuss the form of payment used (cash). Would a strategic
(i.e. non-
financial) buyer pay 100% cash? Is the role of investment banks
involved
different in all-cash and all-stock transactions?
7. As an investment bank advising Heinz's board of directors
would you consider
the offer made by the buying group fair for the company's
shareholders? Add
any additional calculations and comparisons you may need.
Format: typical investment bank report
Deadline: June, 4, 8am
