Jana Partners, the activist investment group that invested in Whole Foods, demanded better performance, threatened a takeover of the company, and essentially forced founder/CEO John Mackey to accept a proposed $13.7 buyout of the retailer by Amazon, reportedly has sold its stake in the company.
For a $300 million profit.
The sale of the shares, Bloomberg writes, suggests that Jana does not believe there will be a competitive bid for Whole Foods from another source. Walmart had been suggested as a possible rival for Whole Foods, but numerous reports have said that this is not going to happen.
Bloomberg also notes that just before agreeing to the Amazon bid, Mackey labeled Jana as "greedy bastards."
For a $300 million profit.
The sale of the shares, Bloomberg writes, suggests that Jana does not believe there will be a competitive bid for Whole Foods from another source. Walmart had been suggested as a possible rival for Whole Foods, but numerous reports have said that this is not going to happen.
Bloomberg also notes that just before agreeing to the Amazon bid, Mackey labeled Jana as "greedy bastards."
- KC's View:
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"Greedy bastards" just seems so subjective to me ... I mean, while Mackey might disagree, I think it is fair to suggest that Whole Foods was having some trouble, with questions being raised about its management's ability to continue growing the company in an atmosphere of heightened competition and technological change. Could Mackey have resuscitated the company on his own? Maybe. Does Amazon offer Whole Foods some new horizons that could serve it well? Quite possibly.
Jana's folks may be "greedy bastards," but if so, they are "greedy bastards" who had a very, very good and profitable couple of months.
