Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)
No. of Recommendations: 1
Berkshire Hathaway May Sell Stock in Kraft Heinz, Filing States
Key Points
About This Summary
Berkshire Hathaway may sell shares from its $7.8 billion equity stake in Kraft Heinz, according to a prospectus filed.
Berkshire Hathaway holds a 27.5% stake in Kraft Heinz, totaling 325.4 million shares.
Kraft Heinz stock fell nearly 5% to $22.59 in after-hours trading, below its 52-week low.
Berkshire Hathaway
BRK.B
-1.60%
may sell shares from its $7.8 billion equity stake in Kraft Heinz
KHC
+0.98%
, according to a prospectus filed late Tuesday with the Securities and Exchange Commission.
The front page of the prospectus says that Berkshire, which received the Kraft Heinz equity as part of a merger of Kraft and Heinz in 2015, may “offer to sell from time to time” shares from that stake. Berkshire now holds a 27.5% stake in the food company—or 325.4 million shares.
Kraft Heinz stock is trading lower in after-hours activity, falling nearly 5% to $22.59, below its 52-week low, as investors react to the possibility that Berkshire could sell part or all of its big stake in the food company."
https://www.barrons.com/articles/berkshire-hathawa...
No. of Recommendations: 1
No. of Recommendations: 20
I think this might clarify the situation:
In the US, unlike other markets I know, a company doesn't go public as such. Rather, a specific block of its shares goes public: a given company may (and typically does) have shares that are registered for sale on exchanges, and shares which are not. Before a given block of shares can be sold, they must be registered. It's not true that one can assume that all shares of a give class are fungible.
If I'm not mistaken, this filing is kicking of the process to get the shares owned by Berkshire so registered. It is a prerequisite to any future sale, and in fact makes the block of shares a bit more valuable, but it isn't any declaration of intent to sell. That being said, it would not be unreasonable to assume that the registration request was at the request of the owner of the shares, and that it does have the effect of clearing an existing hurdle to their sale, be it sooner or later. Maybe Mr Abel wants to sell, maybe he just wants that door unlocked.
Jim
No. of Recommendations: 1
" If I'm not mistaken, this filing is kicking of the process to get the shares owned by Berkshire so registered. It is a prerequisite to any future sale, and in fact makes the block of shares a bit more valuable, but it isn't any declaration of intent to sell. That being said, it would not be unreasonable to assume that the registration request was at the request of the owner of the shares, and that it does have the effect of clearing an existing hurdle to their sale, be it sooner or later. Maybe Mr Abel wants to sell, maybe he just wants that door unlocked.
Jim"
Good morning old bud, in this case, it made the shares 5 % less valuable. :) I have a hunch brkb saw a potential bid for the block and an activist group is about to go to war with KHC, a tactic Buffett wouldn't do via brk. IF Buffett has any interest, in getting even, selling the block to bulldog activists would make his day.
We should know soon enough but it really isn't that material to brk partners. I'd rather know if we sold more apple and bac?
No. of Recommendations: 1
In view of the material write downs brk has already taken in this huge error, if brk sold the entire block for say 24, what is the remaining tax loss brk would realize from the sale? I suspect the loss would offset further gains taken in apple, bac, etc in 2026.
Obviously, the opportunity cost of buying khc over brkb is in the tens of billions. Jim, as you well know I'm not back seat driving. The opportunity cost of buying ibm and khc over brk were other moves I complained about, vigorously, in real time.
Thank you for your attention to this matter.:}:}
Where is the unstable genius, happy healthy new year-old bud, it isn't easy keeping friends for decades.
ucmtsu,no way.
No. of Recommendations: 0
<<Before a given block of shares can be sold, they must be registered. It's not true that one can assume that all shares of a give class are fungible.<<<
Thanks for that helpful information. Does that apply, in this case, if Kraft were to ultimately seek to purchase all or part of the Berkshire stake?
No. of Recommendations: 0
" Berkshire Filing Shows Kraft Heinz Stock on the Block
With Warren Buffett gone, ketchup is no longer flavor of the month. Berkshire Hathaway may sell shares from its $7.8 billion equity stake in Kraft Heinz, according to a prospectus filed late Tuesday with the Securities and Exchange Commission.
The front page of the prospectus says that Berkshire, which received the Kraft Heinz equity as part of a merger of Kraft and Heinz in 2015, may “offer to sell from time to time” shares from that stake. Berkshire holds a 27.5% stake in the food company—or 325.4 million shares.
The stocks have been dragged down alongside other food companies in the past year, falling about 20%. The shares are down 66% over the past 10 years, making it one of the worst performers in the sector.
In December 2025, Warren Buffett stepped down as Berkshire Hathaway CEO after 60 years. Greg Abel, who previously led the company’s non-insurance businesses, took over.
What’s Next: Kraft Heinz won’t be one company for much longer. It said in September that it will split in two—with one spinoff featuring faster-growing brands such as Heinz ketchup and Philadelphia cream cheese, and the other with names such as Lunchables and Maxwell House that face more challenges.
—Andrew Bary and Alex Kozul-Wright"
No. of Recommendations: 4
<<Before a given block of shares can be sold, they must be registered. It's not true that one can assume that all shares of a give class are fungible.<<<
...
Thanks for that helpful information. Does that apply, in this case, if Kraft were to ultimately seek to purchase all or part of the Berkshire stake?
Good question. I don't think so, though I think the seller would have to meet certain tests so that they are not making an "offer" of shares under certain definitions.
I got the impression that registration is only an SEC requirement for a block of shares to be listed on an exchange, but you'd have to ask someone more knowledgeable who knows what a phrase like "Section 4(a)(1˝)” practice, Section 4(a)(1)" means.
Jim
No. of Recommendations: 1
" Good question. I don't think so, though I think the seller would have to meet certain tests so that they are not making an "offer" of shares under certain definitions."
We know the current BODS of khc would like to see the brk shares of khc in, friendly hands. IF khc doesn't have 3-8 billion sitting around to buy all or a piece of the block they are at Buffett's mercy, with respect to who brk sells the block too.
For years Buffett has bought back blocks of brka from old friends who have held the shares of brkb for decades. Obviously, the lawyers signed off on these transactions, but, imo, brka should have disclosed the terms of the sales and offered the same price to any willing sellers.
It's hard to say what the regs are today but I'm sure brk is always in full compliance.
No. of Recommendations: 6
Section 4(a)(1) of the Securities Act of 1933 provides an exemption from registration for sales of shares in a company by anyone who isn't an issuer, underwriter, or dealer. The exemption allows them to sell their securities without formal registration, provided they aren't acting as underwriters in a public distribution. In this case, the KHC shares owned by BRK are common shares, already registered, so they can be sold freely at any time without registration (I am not aware of any lock-up agreement but there may be one.) Details of the spin-off haven't been announced yet, but presumably the shares of both companies will be registered and freely tradable after the closing. KHC can do buy-backs any time, but they have to be publicly disclosed.
The SEC filing that everyone is concerned about (technically, an update to the offering prospectus for the offering of shares in the spin-off) is a disclosure that the company has become aware that a large block of KHC shares could come on the market either before or after the spin-off, so they aren't later accused of failing to disclose a known material risk. The text is available here
https://ir.kraftheinzcompany.com/2835708c-0475-463.... It is unclear if BRK gave KHC some kind of non-public communication that prompted the update, although speculation is rampant. The price of KHC is, in fact, sinking on the news. Has Greg made any statement on KHC? Will he? Should he? Will be interesting to watch how this plays out.
P.S. I like KHC and have been accumulating lately. Anyone other than BRK, I would think this was a head fake. Onward!
abromber
No. of Recommendations: 0
anyone willing to share strategy & indicators that forced (and berkshire cloners) are dropping the khc shareprice?
and at what price & volume?
