Investors Sue to Stop Heinz Takeover

Investors are attacking the takeover of H.J. Heinz by Berkshire Hathaway and 3G Capital Management, arguing that the deal undervalues the global food giant and rewards company insiders at the expense of shareholders.

Two federal shareholder lawsuits were filed in Pittsburgh, where Heinz is headquartered, on Feb. 15, the day after the takeover was announced for $72.50 per share, a 20% premium to the value of the company's shares at the time.

"The proposed acquisition significantly undervalues Heinz," says the civil complaint filed on behalf of shareholder James Clem. "Due in no small part to the company's recent strong growth, just a week ago the stock hit an all-time high of $61 per share."

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