1331 ET - Kraft Heinz's disclosure Tuesday that it is evaluating potential strategic transactions isn't anything new, Morgan Stanley analysts say in a research note. "However, this is the first formal press release addressing the topic, with the decision seeming to stem at least in part from the stock's underperformance and current depressed valuation," they write. The analysts warn that M&A would, likely, be generally viewed as unfavorable, "given the industry has a limited track record for significant value creation." The announcement could also be in part a cushion for news regarding board changes. The company says two directors representing Berkshire Hathaway will step down, a move the Morgan Stanley analysts say raises investor questions about the firm's long-term intentions with Kraft. Shares fall 3%. (connor.hart@wsj.com)
(END) Dow Jones Newswires
May 21, 2025 13:31 ET (17:31 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.