Well-timed trades in the U.S. options market on H.J. Heinz Co before a takeover plan by Berkshire Hathaway and 3G Capital was publicly disclosed, prompted some option-market experts to question whether people with knowledge of the deal made bullish bets ahead of the announcement.Warren Buffett's Berkshire Hathaway Inc and Brazilian private equity firm 3G Capital on Thursday announced a $72.50 per share cash deal for the ketchup and baby food maker, sending the stock up 19 percent.On Wednesday, there was a sudden burst of bullish call buying, expecting that H.J. Heinz shares would rally in coming months, which may be too much of a coincidence to overlook. The one-day gains on these bets would net at least a $1.5 million paper profit, according to Trade Alert."The Heinz deal today has surprised many. But there was at least one individual in the options market who knew that a deal was imminent," said Jeffrey Rubin, director of research at financial research firm Birinyi Associates Inc in Westport, Connecticut.
Berkshire Hathaway Inc. (Berkshire) is a holding company owning subsidiaries engaged in a number of diverse business activities. Shares of BRK-A traded higher by 1.12% or $1661.5/share to $149411.50. In the past year, the shares have traded as low as $117000.00 and as high as $148562.00. On average, 73650 shares of BRK-A exchange hands on a given day and today's volume is recorded at 458.
Berkshire Hathaway Inc. (Berkshire) is a holding company owning subsidiaries engaged in a number of diverse business activities. Shares of BRK-B traded higher by 1.18% or $1.155/share to $99.12. In the past year, the shares have traded as low as $77.98 and as high as $99.00. On average, 4489370 shares of BRK-B exchange hands on a given day and today's volume is recorded at 4111627.
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