Deals
Buffett Betrayed by Calls Shows Nobody Safe From Leaks
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The surge in H.J. Heinz Co. options before Berkshire Hathaway Inc.’s $23 billion takeover bid shows that even the world’s most successful investor isn’t immune to leaks.
Federal authorities began a criminal probe after almost 2,600 Heinz June $65 call options changed hands on Feb. 13, compared with 14 the day before, according to data compiled by Bloomberg. It was the second instance in two years of well-timed trading before billionaire Warren Buffett’s company announced an acquisition. In March 2011, call volume in Lubrizol Corp. climbed to 12 times more than puts days before Berkshire offered to buy the world’s largest producer of lubricant additives.