Key Developments: Berkshire Hathaway Inc (BRKa.N)
20 Dec 2013
Latest Key Developments (Source: Significant Developments)
Reuters reported that Berkshire Hathaway Inc, the investor in DaVita HealthCare Partners Inc, has entered an agreement allowing it to nearly double its stake in the U.S. operator of dialysis clinics to 25%. According to a regulatory filing, the companies on Tuesday entered a standstill agreement, which is often used to prevent unsolicited takeovers, indicating the maximum percentage of shares that Berkshire can own. Berkshire owned about 15 million DaVita shares, or 14.2%, as of March 4, according to another regulatory filing. Full Article
Reuters reported that Swiss Re has settled a dispute with Berkshire Hathaway Inc over a 2010 life reinsurance deal and will receive a $610 million payment from the Warren Buffett's company, the Swiss reinsurer said. Under the original January 2010 deal, Swiss Re agreed to transfer a U.S. life reinsurance contract to Berkshire for 1.3 billion Swiss francs ($1.36 billion), allowing it to reinvest capital more profitably elsewhere. Full Article
H.J. Heinz Co announced that it has entered into a definitive merger agreement to be acquired by an investment consortium comprised of Berkshire Hathaway Inc and 3G Capital.Under the terms of the agreement, which has been unanimously approved by Heinz`s Board of Directors, Heinz shareholders will receive $72.50 in cash for each share of common stock they own, in a transaction valued at $28 billion, including the assumption of Heinz`s outstanding debt. The per share price represents a 20% premium to Heinz`s closing share price of $60.48 on February 13, 2013, a 19% premium to Heinz`s all-time high share price, a 23% premium to the 90-day average Heinz share price and a 30% premium to the one-year average share price. Advisors for this transaction include: Centerview Partners and BofA Merrill Lynch as financial advisors to Heinz and Davis Polk & Wardwell LLP as legal advisor to Heinz. Moelis & Company acted as advisors to the Transaction Committee of Heinz`s Board of Directors and Wachtell, Lipton, Rosen & Katz served as legal advisor to the Transaction Committee of Heinz`s Board of Directors. Lazard served as lead financial advisor. J.P. Morgan and Wells Fargo also served as financial advisors to the investment consortium. Kirkland & Ellis LLP is acting as legal advisor to 3G Capital. Munger, Tolles & Olson LLP is acting as legal advisor to Berkshire Hathaway. Full Article
Reuters reported that Cigna Corp and Berkshire Hathaway Inc struck a $2.2 billion deal in which Berkshire will reinsure Cigna's risk related to future claims for two annuity businesses Cigna has exited. Berkshire will receive $1.8 billion in assets related to the businesses and another $400 million, including $100 million in cash and $300 million funded from a tax benefit Cigna will receive. Full Article
CaixaBank SA Gains EUR 524 Million Through Its Subsidiary’s Deal With Berkshire Hathaway Inc-Reuters
Reuters reported that CaixaBank SA will book EUR 524 million in capital gains after reaching by its subsidiary VidaCaixa, Sociedad Anonima de Seguros y Reaseguros (VidaCaixa) a reinsurance agreement for the transfer of its life insurance portfolio to Warren Buffet's Berkshire Hathaway Inc (Berkshire ). Berkshire will pay VidaCaixa a fee of EUR 600 million for the deal. Full Article
Reuters reported that Berkshire Hathaway Inc would buy direct marketing toy and party supplies company Oriental Trading Co for an undisclosed sum. Berkshire will pay $500 million, the Wall Street Journal reported on November 2, 2012 Full Article
Reuters reported that Berkshire Hathaway, Inc won a bankruptcy auction for a Residential Capital LLC loan portfolio with a $1.5 billion bid. Berkshire had been the opening bidder for the loans at $1.44 billion. A second bidder participated in the auction. The sale needs bankruptcy court approval. A Berkshire Hathaway representative was not immediately available. ResCap, the mortgage lending unit of Ally Financial Inc, filed for bankruptcy in May. It will use proceeds of the auction to repay creditors, including its parent. Full Article
The Lubrizol Corporation, a Berkshire Hathaway Inc announced that it has completed the acquisition of Lipotec SA, is in the development, manufacturing and sale of personal care ingredients based on three core technologies: peptide-based active cosmetic ingredients, delivery systems and biotechnology products. This purchase includes Lipotec`s cosmetic active ingredients business and its subsidiaries, Diverdrugs and Lipofoods. The transaction was announced on June 20, 2012. With the close of this transaction, Lipotec is now part of Lubrizol Advanced Materials, with Lipotec, Diverdrugs and Lipofoods retaining their respective names. The previous owners will continue their activities in the pharmaceutical and cosmetic finished goods segments through BCN Peptides, GP Pharm and Prima-Derm which are not part of the transaction. Financial terms of the agreement were not disclosed. Full Article
Berkshire Hathaway Inc's announced that its subsidiary McLane Company Inc has entered into an agreement to acquire Meadowbrook Meat Company Inc (MBM). MBM, based in Rocky Mount, North Carolina is a customized foodservice distributors for national restaurant chains. MBM will continue to be run in the same prudent and professional manner as it has been for the past 65 years, led by the current executive management team, and operating out of its existing facilities in the same markets. The only change to MBM’s business will be new access to enhanced resources, operational practices and intellectual capital that will provide upside and opportunity for increased levels of success for MBM, McLane and the customers both companies serve. Finanical terms of the transaction were not disclosed. Full Article
Media General, Inc. Completes Sale Of Newspapers To Berkshire Hathaway's World Media Enterprises, Inc.
Media General, Inc. announced that it has completed the previously announced sale of 63 daily and weekly newspapers to World Media Enterprises, Inc., a subsidiary of Berkshire Hathaway, Inc., for $142 million in cash, subject to adjustment for working capital and other items. After transaction fees and the repayment of funds drawn on the revolving credit facility, Media General will use the net proceeds from the newspaper sale to offer to repay on a pro rata basis existing senior secured notes at par and a term loan with no prepayment penalty. Full Article
HOUSTON - Exxon Mobil Corp stock on Wednesday neared $100 per share, the continuation of a rally fueled by investor expectations that the world's largest publicly traded oil company would return more cash to shareholders in coming months.