For the exclusive use of J. SHEN UV1117 Rev. Nov. 23‚ 2008 BERKSHIRE HATHAWAY INC.—INTERCORPORATE INVESTMENTS (A) Company Description Based in Omaha‚ Nebraska‚ Berkshire Hathaway Inc. (BH) was a holding company that owned subsidiaries involved in many diverse businesses. The most important of those were property and casualty insurance businesses‚ although the company owned businesses in other industries as well. Attachments Exhibit1: Exhibit2: Exhibit 3: Exhibit 4: Exhibit 5: Exhibit 6:
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1) Evaluate the terms of the proposed $900 million financing from the perspective of both parties. How would you calculate the return to investors in this transaction? If you need more information‚ what information do you need? Evaluation from Berkshire Hathaway and Lehmann Brother’s Perspective Williams was known for its solid assets‚ strong demand for its products and a reputation for excellent service. Its market value for Equity as compared to its competitors was as follows: The Williams Companies
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for the company) and intrinsic value is the value (i.e. what the company is really worth). 1. Market reacted positively to the acquisition. This is shown by the increase in share price by 2.4% and gain in market value of $2.55 billion for Berkshire Hathaway’s Class A stock. Scottish Power’s share price also jumped 6.28% on the news; the S & P 500 Composite Index closed up 0.02%. This shows consumers’ confidence in the company in the long-term. The $2.55 billion gain in Berkshire’s market
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Executive Summary: On May 24‚ 2005‚ it was announced that Berkshire Hathaway would acquire PacifiCorp. from parent‚ Scottish Power‚ for $5.1 billion in cash and $4.3 in liabilities and preferred stock (Bruner‚ Eades‚ Schill). After the announcement of the acquisition‚ the market responded very positively the same day. Berkshire’s stock price had increased by 2.4%‚ PacifiCorp.’s parent‚ Scottish Power’s by 6.28% and S&P 500 closed up 0.02%. Berkshire Hathaway’s 2.4% shares increase was equivalent to $2
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Professional Career: Warren Edward Buffett is an American Investor‚ Business Magnate and Philanthropist. He is widely considered as the most successful Investor of the 20th century. Buffett is the primary Shareholder‚ Chairman and CEO of BERKSHIRE HATHAWAY and consistently ranked among the world?s wealthiest people. He was ranked as the World?s Wealthiest Person in 2008 and as the 3rd Wealthiest Person in 2011.In 2012‚ American magazine TIME named Buffett as one of the most influential people
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Team 12 | Case Analysis: Warren Buffett and Berkshire Hathaway’s acquisition of GEICO | By: Maryam Abathi‚ Jesper Eriksson‚ Andrew Klotz‚ Lorenzo Manera‚ Stanislav Sobolev‚ | | | | Financial Management Case Analysis at Hult International Business School 2012-2013 | A) What is the possible meaning of the changes in stock price for GEICO and Berkshire Hathaway on the day of the acquisition announcement? Specifically‚ what does the $718 million gain in Berkshire’s market value
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Buffett‚ 2005 Teaching Note Synopsis and Objectives Suggested complementary case about investment managers and superior performance: “Bill Miller and Value Trust” (Case 2). Set in May 2005‚ this case invites the student to assess Berkshire Hathaway’s bid‚ through MidAmerican Energy Holdings Company‚ its wholly owned subsidiary‚ for the regulated energy-utility PacifiCorp. The task for the student is to perform a simple valuation of PacifiCorp and to consider the reasonableness of Berkshire’s
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1. What is the possible meaning of the changes in stock price for Berkshire Hathaway and Scottish Power plc on the day of the acquisition announcement? Specifically‚ what does the $2.55 billion gain in Berkshire’s market value of equity imply about the intrinsic value of PacifiCorp? a. The possible meaning of the changes in stock price is due to the fact that the deal created value for both buyers and sellers; Berkshire was more diversified after the acquisition. b. The $2.55
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a move trying to guess the amount it needs to be the winner. The chronology of the bidding process started by Pilgrim Pride bidding at $45 per share; this was topped by a bid of $50 per share by Tyson‚ followed by a $55 per share bid by Pilgrim Pride. In an effort to secure the deal Tyson decide to up bid Pilgrim Pride‚ this time offering $63 per share. At this point Pilgrim Pride CEO Bill Lovette gave up bidding and said “As a disciplined acquirer‚ we determined that it is in best interest of our
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◀ Cinema Comprehensive index starts in volume 5‚ page 2667. Civil Service Examinations Kējǔ 举 科 The civil service examination system‚ a method of recruiting civil officials based on merit rather than family or political connections‚ played an especially central role in Chinese social and intellectual life from 650 to 1905. Passing the rigorous exams‚ which were based on classical literature and philosophy‚ conferred a highly sought-after status‚ and a rich literati culture in imperial
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