Activist Hedge Fund JANA to Make a Bundle on Whole Foods Sale

June 26, 2017 James Heinsman In the News

Last Friday the giant online marketplace Amazon announced it was buying Whole Foods Market for $13.7 billion in cash. The price per share of the sale is $42, around 27% more than its Thursday evening closing price of $33.06

Barry Rosenstein announced last April that his activist hedge fund, JANA Partners, had a 9% stake in Whole foods. At the time the hedge fund had suggested that Whole Foods put itself up for sale.

At the end of May JANA owned about 26 million shares. Bloomberg estimated that the fund’s cost basis came to about $32.11 per share. Therefore the fund will be making a nice $260 million just by holding the shares for these few months.

Whole Foods’ CEO, John Mackey, referred to the owners of the hedge fund as “greedy bastards,” in an interview in TexasMonthly.

“We need to get better, and we’re doing that. But these guys just want to sell us, because they think they can make forty or fifty percent in a short period of time. They’re greedy bastards, and they’re putting a bunch of propaganda out there, trying to destroy my reputation and the reputation of Whole Foods, because it’s in their self-interest to do so,” Mackey told the TexasMonthly in late April.

Amazon, Barry Rosenstein, Jana Partners, John Mackey, Whole Foods Market,

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