Warren Buffet Offers to Buy Rest of Wesco Financial (WSC)

Buffett’s Berkshire Hathaway Inc. (BRKa), (BRKb) said Thursday that it will offer to buy the remaining 19.9 percent, or roughly 1.4 million shares, it does not already own of its subsidiary Wesco Financial Corp. (WSC). Berkshire owns 80.1% of Wesco, which is led by Buffett’s partner Charlie Munger, and has owned a majority of its shares for more than 25 years. Wesco shares jumped the most intraday since at least 1980 printing $363.50 per share after the announcement.

The company said in a filing with the SEC that it would discuss the deal with Wesco’s independent directors and “would only proceed with such a transaction if it is approved by the Board of Directors of Berkshire and the Board of Directors of Wesco (including a majority of the independent directors of Wesco), as well as by a majority of the shares of Wesco not owned by Berkshire voted at any meeting that may be called to consider such a transaction,” the company added in the filing. “If no transaction is agreed upon and approved, Wesco will continue to operate as it does presently as an 80.1%-owned subsidiary of Berkshire.”

The proposed terms of the deal were not disclosed.

Shares of Wesco were up 10.85% to $360.00 in midday trading Thursday. The stock has traded as high as $416 this year.

Be the first to comment

Leave a Reply

Your email address will not be published.