On February 14, Berkshire Hathaway (Berkshire), the giant conglomerate run by Warren Buffett, and 3G Capital Management (3G), a Brazilian-backed investment firm that owns a majority stake in Burger King, made an announcement to buy food giant H.J. Heinz (Heinz) for $23 billion or $72.50 per share in cash, including assumed debt, the deal was valued at $28 billion.

The deal was intended to assist Heinz in growing globally. By taking the firm private, Heinz would have greater flexibility in decision making not having to worry about quarterly earnings.

Would you approve or recommend this deal?

Do you believe that Heinz is a good candidate for a leveraged buyout? Explain why or why