Cramer on CNBC’s MAD MONEY referred back to activist shareholders coming in, and he referred back to Heinz. With the Cadburry deal adding huge value Cramer wanted to know who else could benefit from this. Cramer thinks Unilever would not even take a call, but if a Carl Icahn did this then might have to take the a call like that.
As far as who would be worth calling that might do it: Clorox (CLX-NYSE) and ConAgra (CAG-NYSE). Private equity would consider both.
Clorox is #1 or #2 in most markets but it owns too many things that areunrelated like salad dressing, cat litter, plastic bags, water filters,bleach, charcoal, and more. ConAgra is in 3 segments: retail products, food ingredients, anddistribution. Cramer thinks these would do better independently andthey are run independently under strong managers. The company couldwill fix itself or sell itself.
Cramer thinks that at a minimum the companies can each sellunderperforming brands or divisions. Cramer said even if this doesn’thappen that they don’t look to have much downside.
Jon C. Ogg
March 28, 2007