Berkshire Euro-bond issue?

[Zorrofan]

http://www.wsj.com/articles/warren-buffetts-berkshire-hathaway-plans-debut-euro-bond-sale-1425466409?mod=yahoo_hs

 

 

cheers

Zorro

[HJ]

Make sense.  Hope it's a negative yielder.

[peter1234]

How many billions?

:)

[Charlie]

Get the money when it is cheap.  :)

 

http://www.wsj.com/articles/berkshire-hathaway-wooed-by-europes-low-borrowing-costs-1425561323?mod=yahoo_hs

 

 

Cheers!

[Jurgis]

I really want to sell 20 year $3B bond at 1.68%. Where can I apply?  ;D

[Zorrofan]

This might be a cheap source of funding for another acquisition in Europe??

 

cheers

Zorro

[gfp]

He said he didn't have a European acquisition at this time to use it for, and that he planned to change it into dollars - but would be perfectly happy to find something and change it back into Euros.  I would certainly leave 400 million in Euros and pay for the entire Motorcycle supplies company with it though.

 

It does seem like he may have a potential large acquisition in the works.  He said he sold XOM because he had another use for the money.  The way he was saying DE will have a tough next couple years made me hope he bids for the entire company.  Would certainly make Howie's day..

[Mephistopheles]

He said he didn't have a European acquisition at this time to use it for, and that he planned to change it into dollars - but would be perfectly happy to find something and change it back into Euros.  I would certainly leave 400 million in Euros and pay for the entire Motorcycle supplies company with it though.

 

It does seem like he may have a potential large acquisition in the works.  He said he sold XOM because he had another use for the money.  The way he was saying DE will have a tough next couple years made me hope he bids for the entire company.  Would certainly make Howie's day..

 

Where did he say that, on Squawk Box?

 

I'm surprised because a) the Euro has come down quite a bit and b) he once was asked about doing exactly this in Japan but said he wouldn't want to take currency risk, so if he borrowed in yen he'd want to invest in yen.

[gfp]

I think I read it in the WSJ.  This isn't the exact article I read, but it echoes the comment -

 

http://www.wsj.com/articles/gdf-suez-issues-zero-coupon-bond-1425486189

 

"The Omaha, Neb., conglomerate is looking for acquisitions in Europe, but Mr. Buffett has yet to find a deal he likes. In the meantime, the company will convert the euros to dollars and pocket the cash until it is ready to buy, the person added."

[Mephistopheles]

I think I read it in the WSJ.  This isn't the exact article I read, but it echoes the comment -

 

http://www.wsj.com/articles/gdf-suez-issues-zero-coupon-bond-1425486189

 

"The Omaha, Neb., conglomerate is looking for acquisitions in Europe, but Mr. Buffett has yet to find a deal he likes. In the meantime, the company will convert the euros to dollars and pocket the cash until it is ready to buy, the person added."

 

Interesting..thanks.

[Charlie]

"he once was asked about doing exactly this in Japan but said he wouldn't want to take currency risk, so if he borrowed in yen he'd want to invest in yen."

 

I remember that. Buffett is much more likely to buy a European company than a Japanese company, because Japanese companies have very low ROE and for a longterm holding you need a high ROE to get rich.

I don´t think that Buffett will change the Euros to US-Dollars at this exchange rate. It makes no sense.

He will probably use it when there is a No-Brainer.  ;)

[Charlie]

OK, it seems that Buffett is really re-financing some US-Dollar debt.

 

http://finance.yahoo.com/news/berkshire-hathaway-turns-europe-dollar-094418721.html