SEC Investigators Review Surge in Heinz Trades Before Merger
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U.S. Securities and Exchange Commission investigators are reviewing whether a surge in bullish bets on H.J. Heinz Co. was fueled by inside information about Berkshire Hathaway Inc. and 3G Capital’s plan to buy the ketchup maker, a person familiar with the matter said.
Trading in Heinz call options, which give the right to buy the underlying shares and profit when the stock rises, increased yesterday to the highest level since Jan. 31, data compiled by Bloomberg show. Heinz shares jumped 20 percent to $72.51 today following the announcement that Warren Buffett’s Berkshire Hathaway and Jorge Paulo Lemann’s 3G Capital agreed to buy the Pittsburgh-based company for about $23 billion.