Rumor has it Warren Buffett is looking to add Dean Foods to his Brk B portfolio and use his vast shipping division to supply the stores.
Thoughts?
8 replies (most recent on top)
You don't want Warren Buffetts dirty grubby fingers in ANY deal. He always shafts employees and even management. All his deals are good only for himself and the aholes who work for him. Many workers lost their jobs in the Hershey fiasco. Same with Kraft Heinz, lots of layoffs. And just look at the Oxy Anadarko deal last year - he's collecting 8% dividend on $10 billion of additional debt he piled on to Oxy – can you even imagine how much that is??
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A year ago, Occidental’s enterprise value was $54 billion. Today, its enterprise value is $80 billion. That is a result of the massive increase in debt Occidental took on as a result of the acquisition.
Part of that debt was the issuance of $10 billion of preferred stock to Warren Buffett, which earns his company an 8 percent dividend. Last week Occidental announced a steep dividend cut to preserve cash in the wake of the collapse in oil prices, but Buffett still gets his 8 percent.
Thus, on the surface, it might appear that Chevron (or any other major oil and gas company) could nab Occidental for a fraction of its market value a year ago. In reality, Occidental’s liabilities of nearly $80 billion (versus $22.5 billion a year earlier) would probably be a major obstacle in getting a deal done.
By Robert Rapier
Buffett is the ultimate scavenger. He feeds on dead outfits like Kraft Heinz, JC Penney, etc. when their debt is humongous and unsustainable. But even he needs smart vultures to co-feed on the carcasses with him, he can't do it alone and he's 167 years old now, how much can he eat alone. So it is doubtful he has the appetite for DFODQ dead body.
What firm do you work for Keller Zabel Investments?
I wish someone would just “PULL” the chain on this T–d of a company already! The incompetent “TEATS” throughout the company have run it dry!
I wh–ed myself to this industry / company for over 30 years and have nothing but regret for staying so long!
No wonder the company is in trouble! Too many of Dean's uneducated workers sit around and pass gas ("rumors") all day long! Where did you hear this fantastic news?! From your "supervisor"? Their debt is so distressed its selling for under 5c on the dollar!! And your firm thinks Warren Buffett is going to scoop it all up like its icecream! Nice!
Exact same thing was posted within a couple of days of the Ch. 11 filing. BS then. BS now.
And your 'firm' is ...? let me guess, the Rink-a-dink Topsy Turvy Toy Train company... ha ha, what a joke. Thankfully he's not that stupid!!!
Hahahahhaha
Fake news. You shouldn't be selling it, and no one is interested in buying it.