According to Zhitong Finance APP, Kraft Heinz (KHC.US) disclosed later on Tuesday that the company is evaluating strategic transactions to unlock shareholder value, and Berkshire Hathaway (BRK.A.US, BRK.B.US) will no longer hold a board seat in the food giant. This news has sparked heated discussions among Wall Street analysts.
Bank of America analyst Peter Galbo stated that although Berkshire Hathaway no longer has a board seat, it will still hold approximately 27.5% of Kraft Heinz's shares. Galbo warned, &#34;While we are unclear about Berkshire's intentions, in our view, the exit from the board may signal that Berkshire could sell its investment in Kraft Heinz.&#34;
Wells Fargo analyst Chris Carey emphasized that about one-third of Kraft Heinz's portfolio may be under review. He reminded investors that the company has recently been reconfiguring its portfolio and divesting non-core assets. He pointed out that Kraft Heinz seems to be seeking strategic options for &#34;balancing&#34; its assets, and it has been reported that the company is looking to strike a deal with Oscar Mayer. Carey stated, &#34;In our view, the restructured board may also be more aligned on potential asset sales.&#34;
Morgan Stanley analyst Megan Alexander Clapp noted that while the evaluation of strategic transactions may not be anything new, a formal press release could convey a sense of urgency. Another possibility is that the company may want to soften the news of board changes. Clapp stated, &#34;The timing may just be coincidental, but we believe this series of events could raise some investor concerns about the long-term intentions of its largest shareholder under the new leadership.&#34;
Kraft Heinz fell 4.55% on Wednesday, and the stock has declined 12% year-to-date.
The ETFs with the largest exposure to Kraft Heinz are First Trust Nasdaq Food &amp; Beverage ETF (FTXG) and Invesco S&amp;P Ultra Dividend Revenue ETF (RDIV)

Kraft Heinz disclosed later on Tuesday that the company is evaluating strategic transactions to unlock shareholder value, and Berkshire Hathaway (BRK.) will no longer hold a board seat in the food giant

- Kraft Heinz (KHC.US) is evaluating strategic transactions to enhance shareholder value, with Berkshire Hathaway (BRK.A.US, BRK.B.US) no longer holding a board seat.  
- Analysts express concerns that Berkshire's exit may indicate a potential sale of its 27.5% stake in Kraft Heinz, while the company is reportedly seeking strategic options for its assets, including a deal with Oscar Mayer.  
- Kraft Heinz shares fell 4.55% on Wednesday, contributing to a 12% decline this year, with significant exposure in ETFs like First Trust Nasdaq Food & Beverage ETF (FTXG) and Invesco S&P Ultra Dividend Revenue ETF (RDIV).  

Zhitong

Kraft Heinz

Wells Fargo

Kraft Heinz is making frequent moves, and Wall Street is focusing on Berkshire's investment commitments