LONDON – Shares in Kraft Heinz are expected to plunge when markets open Friday after the consumer goods company said it was being investigated by U.S. regulators and it reported a massive loss. Kraft Heinz said it received a subpoena in October from the U.S. Securities and Exchange Commission related to an investigation of its procurement operations, which cover deals a company makes with outside suppliers. It said it's cooperating with authorities. The probe was disclosed in the earnings report Thursday, in which it reported a massive $12.6 billion loss for the fourth quarter, compared with an $8 billion profit a year earlier. The loss was largely due to a $15.4 billion writedown on the value of its Kraft and Oscar Mayer trademarks.
FILE - At left, in a March 25, 2015, file photo, a Heinz ketchup sign is shown on the side of the Senator John Heinz History Center in Pittsburgh. At right, also in a March 25, 2015, file photo, the Kraft logo appears outside of their headquarters in Northfield, Ill. U.S. food giant Kraft Heinz Co. is confirming that it's made an offer to buy Europe's Unilever and been rejected. The company said Friday, Feb. 17, 2017, that talks are ongoing with the Dutch company, but that no deal can be assured.
Parent company Kraft Heinz closed the Madison facility in June as part of a corporate restructuring that resulted from the 2015 merger of Kraft Foods Group and H.J. Heinz Co. About a third of the facility's equipment was taken to other Kraft Heinz factories. Reich and Rabin purchased the remaining equipment in October.