This year has already seen some merger
and acquisition chatter in the retail food distribution and grocery space. Recently, RBC analysts David Palmer and Kevin
Lehmann suggested
Pinnacle Foods (NYSE: PF) has the potential to
be a takeover target for Conagra Brands Inc (NYSE: CAG) citing four key factors:
- Pinnacle being ready to sell itself.
- Conagra’s management having intimate knowledge of Pinnacle’s business.
- Integration between the two would be the most high-synergy in food.
- The merger could add 16 percent to Conagra’s EPS.
Monday's Movements
Grocer and distribution stocks saw some upward momentum in trading on Monday:
-
G Willi-Food International Ltd (NASDAQ: WILC): Up 5.6 percent.
-
SpartanNash Co (NASDAQ: SPTN): Up 4.6
percent.
-
Sprouts Farmers Market Inc (NASDAQ: SFM): Up 2.3 percent.
-
SUPERVALUE INC. (NYSE: SVU): Up 7.5
percent.
-
United Natural Foods, Inc. (NASDAQ: UNFI): Up 6 percent.
-
US Foods Holding Corp (NYSE: USFD): Up
3.8 percent.
-
Weis Markets, Inc. (NYSE: WMK): Up 2.8
percent.
(Upward movements are as of 11:20 am, Monday, November 14)
Tuesday, Pinnacle Foods CEO Mark Clouse bought 10,000 shares at $47.64/shares ($476,400), bringing his total stake to 105,057
shares.
This week has also seen two large option calls for Whole Foods Market, Inc. (NASDAQ: WFM), which were compiled by Benzinga Pro:
- Option Alert: WFM Feb17 34.0 Calls Sweep: 583 @ ASK $1.239: 584 traded vs 302 OI: Earnings 2/8 After Close (est) $31.71
Ref.
- Option Alert: WFM Nov16 33.0 Calls Sweep: 500 @ ASK $0.29: 1382 traded vs 6125 OI: Earnings 2/8 After Close (est) $32.04
Ref.
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.