Some Like it Hot: Campbell Soup Company (CPB)

Campbell has been simmering for some time as a potential takeover target. And as merger and acquisition activity has been hot to date in 2013, Campbell’s shares have reached a near boiling point. Campbell had long been viewed as a good partner for Heinz, but now that Heinz is off the table other suitors bowled over by Campbell’s prowess may come knocking.

Campbell is exactly the kind of company guru investor Warren Buffett relishes: American made, good products, strong brands and a solid balance sheet. The Oracle of Omaha says he remains on the prowl for other deals. And with $48 billion left in Berkshire Hathaway’s kitty, Buffett has plenty of cash left to wheel and deal. Furthermore, deal making on Wall Street is off to its strongest start in six years, and plenty more transactions are surely cooking.

But Campbell might also do the calling. CFO Craig Owens said the company would be tempted to pounce if a good fit presented itself.

Good soup starts with good stock– in Campbell’s case it works both ways.

The article Some Like it Hot originally appeared on Fool.com and is written by Diane Alter.

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