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Berkshire news items


Munger_Disciple
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Not sure if this was posted elsewhere on the board, but on the same day as the Charter Brokerage acquisition announcement Berkshire sent out a press release confirming the closing of their investment in QSR, Restaurant Brands International (the BKW-THI merger).  What was previously unreported about the deal is that Berkshire will hold 4.18% of the common shares (and 14.37% of the votes because of the preferred shares) following the deal.  Since the penny warrants were only for 1.75% of the common, this means Berkshire purchased a meaningful stake (over $400 million USD) in either BKW or THI before the merger (or has investments in the 3G partnership itself).

 

2.43% of the combined company was accumulated by Berkshire and 1.75% was given for almost free.

 

http://berkshirehathaway.com/news/DEC1214-2.pdf

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Not sure if this was posted elsewhere on the board, but on the same day as the Charter Brokerage acquisition announcement Berkshire sent out a press release confirming the closing of their investment in QSR, Restaurant Brands International (the BKW-THI merger).  What was previously unreported about the deal is that Berkshire will hold 4.18% of the common shares (and 14.37% of the votes because of the preferred shares) following the deal.  Since the penny warrants were only for 1.75% of the common, this means Berkshire purchased a meaningful stake (over $400 million USD) in either BKW or THI before the merger (or has investments in the 3G partnership itself).

 

2.43% of the combined company was accumulated by Berkshire and 1.75% was given for almost free.

 

http://berkshirehathaway.com/news/DEC1214-2.pdf

 

Not sure I believe he would be buying on open market. Seems like a conflict of interest?

 

But there was a confidential disclosure in the last 13F so maybe they were buying THI?

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They could have purchased Tim Hortons shares in Canada and they wouldn't have to report them on the 13F at all.  It is also possible they invested in 3G partnerships directly and received interests in the common that way - but that is not common for Buffett.

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