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Entries in Berkshire Hathaway (6)

Thursday
Feb142013

Berkshire Hathaway and 3G Capital to Purchase Heinz for $28 Billion

Edouard H.R. Gluck/Bloomberg via Getty Images(NEW YORK) -- Berkshire Hathaway and 3G Capital will acquire H.J. Heinz Company, the food giant best known for its 57 varieties of ketchup, in a transaction valued at a whopping $28 billion, according to a press release from Heinz.

Berkshire Hathaway, the conglomerate run by billionaire Warren Buffett, and 3G will each pay $4 billion in cash in the deal, with Berkshire contributing an additional $8 billion for preferred shares, according to the New York Times. Including the assumption of Heinz's debts, the deal is the fourth largest ever in the food and beverage industry.

In Heinz's statement, CEO William Johnson said, “We look forward to partnering with Berkshire Hathaway and 3G Capital, both greatly respected investors, in what will be an exciting new chapter in the history of Heinz."

The agreement was unanimously approved by the Heinz Board of Directors, and is subject to shareholder approval. The merger is expected to close before the end of the third quarter of 2013. Berkshire and 3G have pledged to maintain Heinz's headquarters in Pittsburgh, the city that has been home to the condiment company for over 100 years.

According to the Times, Buffett told CNBC that "Heinz will be 3G's baby." Heinz, which owns the potato company Ore-Ida as well as Lea & Perrins Worcestershire sauce in addition to their best known condiment, is an intriguing fit for 3G, which also owns a majority stake in fast food giant Burger King.

Copyright 2013 ABC News Radio

Friday
Dec092011

Warren Buffett Chooses Berkshire Hathaway Successor

Scott Eells/Bloomberg via Getty Images(OMAHA, Neb.) -- Warren Buffett has chosen his successor at Berkshire Hathaway.  Buffett announced in a 60 Minutes interview scheduled to air Sunday, according to Forbes, that his son Howard will follow him at the company pending board approval.

Howard Buffett, 56, is expected to take the unpaid position of "non-executive chairman," and serve as a "guardian" of the company's "values" after the death of the elder Buffett, who is 81, Forbes reports of the interview.  

While serving in this role, Howard Buffett plans to maintain his job as a corn and soybean farmer.

Copyright 2011 ABC News Radio

Monday
Sep262011

Warren Buffett Sees a Stock Market Bargain

Jemal Countess/Getty Images for Time Inc.(NEW YORK) -- Warren Buffett’s Berkshire Hathaway, which has one of the highest share prices in the world, announced Monday its first buyback plan in at least four decades.

Companies buy back their own shares when they believe they are especially cheap, and Berkshire Hathaway is going for fire-sale prices these days. The shares closed Friday at $100,320 each, down 17 percent this year. They jumped $5,700 Monday on the news of the buyback, even though the Omaha, Neb.-based company didn’t say how many shares it would repurchase.

In a statement, the company said: “The underlying businesses of Berkshire are worth considerably more than this amount. If we are correct in our opinion, repurchases will enhance the per-share intrinsic value of Berkshire shares.”

Berkshire owns diverse businesses including insurance, retail, railroads, furnishings, newspapers and electric and gas utilities.  The firm has a pile of cash: $47.9 billion as of June 30.

But shareholders don’t get to see any of that cash. Over the years, Berkshire hasn’t paid a dividend; instead it plows the money back into the company and uses the earnings from it to boost profits.

Copyright 2011 ABC News Radio

Wednesday
Sep212011

'Forbes' Lists the Richest People in America

Scott Olson/Getty Images(NEW YORK) -- Forbes has released its annual list of the 400 wealthiest Americans, worth an estimated combined $1.53 trillion.

Their total combined wealth is up 12 percent from last year. Perhaps more notable is that 70 percent of the individuals on the list are self-starters, which marks an increase of 55 percent since 1997.

In addition, a group of younger entrepreneurs are also making their way up the list. Topping the ranks of younger entrepreneurs is Facebook’s 27-year-old Mark Zuckerberg, coming in at 14th place, with $10.6 billion, ahead of Google rivals Sergey Brin and Larry Page with $1.7 billion, tied at 15th.

Dustin Moskovitz, Zuckerberg’s former roommate, is the youngest billionaire to make the list.


Here’s a look of the top ten wealthiest Americans:


1.    Bill Gates, $59 billion
2.    Warren Buffett, $39 billion
3.    Larry Ellison, $33 billion
4.    Charles Koch, $25 billion
5.    David Koch, $25 billion
6.    Christy Walton, $24.5 billion
7.    Jim C. Walton $21.1 billion
8.    Alice Walton $20.9 billion
9.    George Soros $22 billion
10.  Sheldon Adelson, $21.5 billion


Copyright 2011 ABC News Radio

Thursday
Aug252011

Warren Buffett Invests in Bank of America

ABC News(CHARLOTTE, N.C.) -- Berkshire Hathaway, led by billionaire Warren Buffett, announced it will buy 50,000 shares of Bank of America preferred stock at $100,000 per share in a private offering. BofA shares soared on this news, though U.S. stock markets were down Thursday morning on yet another gloomy unemployment claim report.

Buffett said he conjured the idea while in the bathtub on Tuesday. He called Daniel Monyihan, chief executive officer of Bank of America, on Wednesday, Buffett told CNBC.

Stock of Bank of America, the largest bank in the U.S., rose more than 20 percent after the market's open but came down slightly later in the morning. At 10:40 AM eastern time, the stock was up 17 percent to $8.18 a share. The Dow Jones Industrial Average fell 129 points to 11,193.

Bank of America stock had plunged 47 percent for the year, as embattled CEO Brian Moynihan has tried to manage its pile of bad mortgages and its exposure to the European debt crisis.

But Warren Buffett praised Monyihan and the bank in a statement.

"Bank of America is a strong, well-led company, and I called Brian to tell him I wanted to invest in it," Berkshire Hathaway chairman and chief executive officer Warren Buffett, said in a press release. "I am impressed with the profit-generating abilities of this franchise, and that they are acting aggressively to put their challenges behind them. Bank of America is focused on their customers and on serving them well. That's what customers want, and that's the company's strategy."

In conjunction with the agreement, Berkshire Hathaway will also receive warrants to purchase 700 million shares of Bank of America common stock at an exercise price of about $7.14 a share. The warrants may be exercised during the 10 years following the closing date of the transaction, according to a Bank of America statement.

Buffett made a similar investment in Goldman Sachs in 2008, which some played a significant part in Goldman Sachs' growth since the financial crisis.

"We are building the best franchise in financial services and we have laid out a clear plan to deliver long-term shareholder value," Moynihan said in a statement. "I remain confident that we have the capital and liquidity we need to run our business. At the same time, I also recognize that a large investment by Warren Buffett is a strong endorsement in our vision and our strategy."

Copyright 2011 ABC News Radio

Monday
Aug152011

Warren Buffett to Congress: Stop 'Coddling' Billionaires

ABC News(NEW YORK) -- When it comes to taxes, Warren Buffett, one of the country's richest men, says that he and other high-earning Americans need not be “coddled” by Congress, and that “most wouldn’t mind being told to pay more.”

In an op-ed published in The New York Times, the Berkshire Hathaway chairman and CEO says, “My friends and I have been coddled long enough by a billionaire-friendly Congress. It’s time for our government to get serious about shared sacrifice.”

“Last year my federal tax bill -- the income tax I paid, as well as payroll taxes paid by me and on my behalf -- was $6,938,744,” Buffet writes. “That sounds like a lot of money. But what I paid was only 17.4 percent of my taxable income -- and that’s actually a lower percentage than was paid by any of the other 20 people in our office. Their tax burdens ranged from 33 percent to 41 percent and averaged 36 percent.”

Buffett calls on the Super Committee to raise tax rates on the roughly 240,000 American households which netted more than $1 million in income in 2009.

“I would raise rates immediately on taxable income in excess of $1 million, including, of course, dividends and capital gains,” Buffett says in The New York Times. “And for those who make $10 million or more -- there were 8,274 in 2009 -- I would suggest an additional increase in rate.”

“I know well many of the mega-rich and, by and large, they are very decent people,” Buffett writes. “They love America and appreciate the opportunity this country has given them. Many have joined the Giving Pledge, promising to give most of their wealth to philanthropy. Most wouldn’t mind being told to pay more in taxes as well, particularly when so many of their fellow citizens are truly suffering.”

Copyright 2011 ABC News Radio







ABC News Radio