("Berkshire Hathaway Agrees To Buy 19.9% Wesco Stake For
$547.6M," at 8 a.m. EST, misstated the month that Berkshire
Hathaway announced its intention to buy Wesco in the second
paragraph. Also, Munger's age was incorrect in the third paragraph.
The correct version follows:)
DOW JONES NEWSWIRES
Berkshire Hathaway Inc. (BRKA, BRKB) agreed to acquire the 19.9%
stake in Wesco Financial Corp. (WSC) it doesn't already own in a
deal valued at about $547.6 million.
Berkshire, run by billionaire Warren Buffett, in August
announced its intention to acquire the rest of Wesco, a Pasadena,
Calif., holding company for insurers and other businesses that is
run by Charlie Munger, Berkshire's vice chairman and Buffett's
long-term business partner. At that time, the companies said the
value of the deal would be determined by Wesco's book value around
the time the deal closes.
Berkshire bought its majority stake in Wesco more than 30 years
ago for a little over $30 million. Munger, 87 years old, previously
said Wesco ought to be completely merged into Berkshire, but it was
seen as difficult in the past because shareholders of Wesco had
pushed its share price well above its book value.
Wesco shareholders can elect to receive cash or Berkshire Class
B shares, with the value currently estimated at $386.55 a share
plus an earnings consideration, which represents Wesco's per share
shareholders equity at the end of last month. The final price and
an exchange ratio for share transactions haven't been
determined.
The transaction, expected to close before the end of the second
quarter, requires approval by the majority of shareholders at a
special meeting. The date hasn't been disclosed.
Wesco shares closed Friday at $380.67 and were inactive
premarket. The stock is up 7.2% in the past year.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
Tess.Stynes@dowjones.com