Berkshire Hathaway and Wesco Financial Corporation have announced a definitive merger agreement in which Berkshire will acquire the remaining 19.9 percent of Wesco’s common stock that it does not currently own. Berkshire announced its intention to pursue the acquisition in August 2010 and the final terms of the agreement appear to mirror the initial offer. Read this article for more details.
Warren Buffett is not planning to increase the terms of his offer for the 19.9 percent stake in Wesco Financial Corporation that Berkshire does not already own. In a filing with the SEC today, Mr. Buffett characterizes the current offer as “fair” and clearly states that Berkshire has “no interest in effecting a transaction at a higher price”. Read this article for more details.
According to a press release issued today, CORT has acquired the rental operations of Lounge22, including product and exclusive rights to market the rental brand on a global basis. CORT is a subsidiary of Wesco Financial Corporation which is an 80 percent owned subsidiary of Berkshire Hathaway. Last week, Berkshire Hathaway filed a disclosure with the SEC indicating that it will attempt to acquire the 20 percent of Wesco that it does not already own. Read this article for more details.
In a 13D filing today with the SEC, Berkshire Hathaway has disclosed its intention to acquire the remaining 19.9 percent of the shares of Wesco Financial Corporation that it does not already own. Wesco has been a majority controlled subsidiary of Berkshire Hathaway for over thirty years but shares continue to trade independently. Charlie Munger serves as Chairman of Wesco and is also Vice Chairman of Berkshire Hathaway. Read this article for more details on the proposed transaction.
Wesco Financial Corporation reported improved results (pdf) for the second quarter of 2010 with net income rising to $31.3 million compared with $12.9 million for the second quarter of 2009. The improved performance is primarily attributed to the stronger underwriting results of Wesco’s insurance business along with the impact of cost cutting measures at the company’s CORT furniture rental unit. While CORT posted net income of $6.7 million for the quarter compared to $1.5 million for the second quarter of 2009, sales were slightly lower although management states that “core rental revenues” have shown recent improvements. Read this article for a summary of Wesco’s Q2 results.