view original
post
Omaha investor Warren Buffett’s Berkshire Hathaway is buying the rest of its utility unit from the estate of a longtime board member who died three years ago, but it’s not clear exactly how much it will pay for that 8% stake in the massive utility business.
Berkshire Hathaway Energy said in a regulatory filing Tuesday that it will pay Walter Scott Jr.’s family $2.4 billion cash and issue a number of Class B Berkshire shares that are equivalent to 1.6 million shares of the utility business, but since the utility’s shares aren’t publicly traded it is hard to estimate the total value of the deal that’s expected to close later this year. Altogether, Berkshire is buying more than 4.4 million shares in the utilities to give it 100% ownership.
Walter Scott Jr. was a former Kiewit CEO and chairman and an Omaha philanthropist who died in September 2021.
Berkshire Hathaway managers and members of the board of directors Matt Rose, CEO of BNSF, left, and Walter Scott, member of the board, walk to a Burlington Northern Santa Fe passenger train in Omaha on April 30, 2010, after their traditional lunch with Warren Buffett.
NATI HARNIK, ASSOCIATED PRESS
“That filing left me with a number of questions, but they don’t have an investor relations function so I don’t expect those questions to be answered,” CFRA Research analyst Cathy Seifert said. “The hope is that when they report earnings there will be more details.”
Des Moines-based Berkshire Hathaway Energy includes MidAmerican Energy, Pacificorp and NV Energy in Nevada and a Canadian electricity transmission provider called AltaLink, among other businesses.
Buffett doesn’t like to disclose any more than he has to, and the Berkshire Hathaway parent company didn’t issue a press release or file anything with the Securities and Exchange Commission, leaving investors to speculate.
Apparently, Buffett doesn’t believe this transaction is big enough to have a material impact on Berkshire Hathaway given that it just reported more than $30.3 billion in earnings and was sitting on $277 billion cash in the second quarter.
Warren Buffett, chairman and CEO of Berkshire Hathaway, speaks during a game of bridge after the annual Berkshire Hathaway shareholders meeting in Omaha on May 5, 2019.
NATI HARNIK, ASSOCIATED PRESS
But a similar transaction when Berkshire bought out Vice Chairman Greg Abel’s 1% stake in the utility business two years ago for $870 million suggests this deal with the Scott family is sizeable. Abel is slated to eventually replace Buffett as Berkshire Hathaway’s CEO. If Berkshire agreed to pay the same price for the shares the Scott family is selling, the deal should be worth $6.96 billion.
Of course, in the past two years, one of Berkshire’s biggest utilities, PacifiCorp, has paid out hundreds of millions in settlements related to wildfires in Oregon and California that damaged thousands of homes in 2020, and Berkshire Hathaway has recorded $2.7 billion in wildfire losses.
Buffett was down on the utility industry’s prospects in this year’s letter to Berkshire Hathaway shareholders. But it’s not clear what the current value of the utility divisions shares are today. Buffett didn’t immediately respond to questions about the deal with the Scott family, and the utility unit declined to comment beyond what is in the regulatory filing.
In addition to utilities, Berkshire Hathaway owns BNSF railroad, a number of large insurance companies including Geico and a varied assortment of manufacturing and retail firms that includes aviation parts maker Precision Castparts and more well-known brands like Dairy Queen and See’s Candy.
Photos: 2024 Berkshire Hathaway Annual Shareholders Meeting
People run to the arena after being let in for the Berkshire Hathaway Annual Shareholders meeting at the CHI Health Center in Omaha on Saturday, May 4, 2024.
CHRIS MACHIAN, THE WORLD-HERALD
People line up for the Berkshire Hathaway Annual Shareholders meeting at the CHI Health Center in Omaha on Saturday, May 4, 2024.
CHRIS MACHIAN, THE WORLD-HERALD
People line up for the Berkshire Hathaway Annual Shareholders meeting at the CHI Health Center in Omaha on Saturday, May 4, 2024.
CHRIS MACHIAN, THE WORLD-HERALD
People protesting coal greet shareholders walking out during the lunch break of the Berkshire Hathaway Annual Shareholders meeting at the CHI Health Center in Omaha on Saturday, May 4, 2024.
CHRIS MACHIAN, THE WORLD-HERALD
A mobile billboard protesting coal greet shareholders walking out during the lunch break of the Berkshire Hathaway Annual Shareholders meeting at the CHI Health Center in Omaha on Saturday, May 4, 2024.
CHRIS MACHIAN, THE WORLD-HERALD
People protesting coal greet shareholders walking out during the lunch break of the Berkshire Hathaway Annual Shareholders meeting at the CHI Health Center in Omaha on Saturday, May 4, 2024.
CHRIS MACHIAN, THE WORLD-HERALD
People protesting coal greet shareholders walking out during the lunch break of the Berkshire Hathaway Annual Shareholders meeting at the CHI Health Center in Omaha on Saturday, May 4, 2024.
CHRIS MACHIAN, THE WORLD-HERALD
People protesting coal greet shareholders walking out during the lunch break of the Berkshire Hathaway Annual Shareholders meeting at the CHI Health Center in Omaha on Saturday, May 4, 2024.
CHRIS MACHIAN, THE WORLD-HERALD
People make their way to the arena after being let in for the Berkshire Hathaway Annual Shareholders meeting at the CHI Health Center in Omaha on Saturday, May 4, 2024.
CHRIS MACHIAN, THE WORLD-HERALD
People peek in the doors before being allowed in for the Berkshire Hathaway Annual Shareholders meeting at the CHI Health Center in Omaha on Saturday, May 4, 2024.
CHRIS MACHIAN, THE WORLD-HERALD
People line up for the Berkshire Hathaway Annual Shareholders meeting at the CHI Health Center in Omaha on Saturday, May 4, 2024.
CHRIS MACHIAN, THE WORLD-HERALD
People run to the arena after being let in for the Berkshire Hathaway Annual Shareholders meeting at the CHI Health Center in Omaha on Saturday, May 4, 2024.
CHRIS MACHIAN, THE WORLD-HERALD
A few protestors gathered outside the convention center displaying a sign reading “Justice for Palestine” and shouting into a bullhorn before the Berkshire Hathaway Annual Shareholders meeting at the CHI Health Center in Omaha on Saturday, May 4, 2024.
CHRIS MACHIAN, THE WORLD-HERALD
A few protestors gathered outside the convention center displaying a sign reading “Justice for Palestine” and shouting into a bullhorn before the Berkshire Hathaway Annual Shareholders meeting at the CHI Health Center in Omaha on Saturday, May 4, 2024.
CHRIS MACHIAN, THE WORLD-HERALD
People make their way to the arena for the Berkshire Hathaway Annual Shareholders meeting at the CHI Health Center in Omaha on Saturday, May 4, 2024.
CHRIS MACHIAN, THE WORLD-HERALD
People get ready to go through security screenings before going to the Berkshire Hathaway Annual Shareholders meeting at the CHI Health Center in Omaha on Saturday, May 4, 2024.
CHRIS MACHIAN, THE WORLD-HERALD
Security directs people where to go as they head to the Berkshire Hathaway Annual Shareholders meeting at the CHI Health Center in Omaha on Saturday, May 4, 2024.
CHRIS MACHIAN, THE WORLD-HERALD
People make their way to the arena for the Berkshire Hathaway Annual Shareholders meeting at the CHI Health Center in Omaha on Saturday, May 4, 2024.
CHRIS MACHIAN, THE WORLD-HERALD
People make their way to the arena for the Berkshire Hathaway Annual Shareholders meeting at the CHI Health Center in Omaha on Saturday, May 4, 2024.
CHRIS MACHIAN, THE WORLD-HERALD
People line up on the skywalk from the Hilton Hotel for the Berkshire Hathaway Annual Shareholders meeting at the CHI Health Center in Omaha on Saturday, May 4, 2024.
CHRIS MACHIAN, THE WORLD-HERALD
People line up for the Berkshire Hathaway Annual Shareholders meeting at the CHI Health Center in Omaha on Saturday, May 4, 2024.
CHRIS MACHIAN, THE WORLD-HERALD
People line up for the Berkshire Hathaway Annual Shareholders meeting at the CHI Health Center in Omaha on Saturday, May 4, 2024.
CHRIS MACHIAN, THE WORLD-HERALD
Warren Buffett tours the exhibitor hall during the 2024 Berkshire Hathaway Shareholder Shopping Day at CHI Health Center in Omaha on Friday, May 3, 2024.
NIKOS FRAZIER, THE WORLD-HERALD
A look inside the CHI Health Center during the 2024 Berkshire Hathaway Shareholder Shopping Day in Omaha on Friday, May 3, 2024.
NIKOS FRAZIER, THE WORLD-HERALD
Sophia Phillips, 14, of Omaha, tries on a cowboy hat during the 2024 Berkshire Hathaway Shareholder Shopping Day at CHI Health Center in Omaha on Friday, May 3, 2024.
NIKOS FRAZIER, THE WORLD-HERALD
Jack Skrocky of Troy, New York, chooses a box of assorted See’s Candies chocolates during the 2024 Berkshire Hathaway Shareholder Shopping Day at CHI Health Center in Omaha on Friday, May 3, 2024.
NIKOS FRAZIER, THE WORLD-HERALD
Shareholders queue outside the CHI Health Center during the 2024 Berkshire Hathaway Shareholder Shopping Day in Omaha on Friday, May 3, 2024.
NIKOS FRAZIER, THE WORLD-HERALD
Warren Buffett and Charlie Munger bobbleheads are seen at the Oriental Trading Co. booth during the 2024 Berkshire Hathaway Shareholder Shopping Day at CHI Health Center in Omaha on Friday, May 3, 2024.
NIKOS FRAZIER, THE WORLD-HERALD
Warren Buffett tours the exhibitor hall during the 2024 Berkshire Hathaway Shareholder Shopping Day at CHI Health Center in Omaha on Friday, May 3, 2024.
NIKOS FRAZIER, THE WORLD-HERALD
Warren Buffett tours the exhibitor hall during the 2024 Berkshire Hathaway Shareholder Shopping Day at CHI Health Center in Omaha on Friday, May 3, 2024.
NIKOS FRAZIER, THE WORLD-HERALD
Laura and Judd Zebersky talk with Warren Buffett during the 2024 Berkshire Hathaway Shareholder Shopping Day at CHI Health Center in Omaha on Friday, May 3, 2024.
NIKOS FRAZIER, THE WORLD-HERALD
Warren Buffett tours the exhibitor hall during the 2024 Berkshire Hathaway Shareholder Shopping Day at CHI Health Center in Omaha on Friday, May 3, 2024.
NIKOS FRAZIER, THE WORLD-HERALD
Warren Buffett tours the exhibitor hall during the 2024 Berkshire Hathaway Shareholder Shopping Day at CHI Health Center in Omaha on Friday, May 3, 2024.
NIKOS FRAZIER, THE WORLD-HERALD
Warren Buffett tours the exhibitor hall during the 2024 Berkshire Hathaway Shareholder Shopping Day at CHI Health Center in Omaha on Friday, May 3, 2024.
NIKOS FRAZIER, THE WORLD-HERALD
Warren Buffett tours the exhibitor hall during the 2024 Berkshire Hathaway Shareholder Shopping Day at CHI Health Center in Omaha on Friday, May 3, 2024.
NIKOS FRAZIER, THE WORLD-HERALD
CNBC “Squawk Box” host Becky Quick during the 2024 Berkshire Hathaway Shareholder Shopping Day at CHI Health Center in Omaha on Friday, May 3, 2024.
NIKOS FRAZIER, THE WORLD-HERALD
CNBC “Squawk Box” host Becky Quick during the 2024 Berkshire Hathaway Shareholder Shopping Day at CHI Health Center in Omaha on Friday, May 3, 2024.
NIKOS FRAZIER, THE WORLD-HERALD
Warren Buffett poses for photos with See’s Candies on the exhibitor hall during the 2024 Berkshire Hathaway Shareholder Shopping Day at CHI Health Center in Omaha on Friday, May 3, 2024.
NIKOS FRAZIER, THE WORLD-HERALD
Clayton employees wait for Warren Buffett to make his way to them during the 2024 Berkshire Hathaway Shareholder Shopping Day at CHI Health Center in Omaha on Friday, May 3, 2024.
NIKOS FRAZIER, THE WORLD-HERALD
Warren Buffett tours BNSF Railway booth during the 2024 Berkshire Hathaway Shareholder Shopping Day at CHI Health Center in Omaha on Friday, May 3, 2024.
NIKOS FRAZIER, THE WORLD-HERALD
Warren Buffett tours BNSF Railway booth during the 2024 Berkshire Hathaway Shareholder Shopping Day at CHI Health Center in Omaha on Friday, May 3, 2024.
NIKOS FRAZIER, THE WORLD-HERALD
Warren Buffett talks with Katie Farmer, president and CEO of BNSF Railway, at the BNSF booth during the 2024 Berkshire Hathaway Shareholder Shopping Day at CHI Health Center in Omaha on Friday, May 3, 2024.
NIKOS FRAZIER, THE WORLD-HERALD
Warren Buffett and actor Bill Murray talk during the 2024 Berkshire Hathaway Shareholder Shopping Day at CHI Health Center in Omaha on Friday, May 3, 2024.
NIKOS FRAZIER, THE WORLD-HERALD
Warren Buffett and actor Bill Murray talk during the 2024 Berkshire Hathaway Shareholder Shopping Day at CHI Health Center in Omaha on Friday, May 3, 2024.
NIKOS FRAZIER, THE WORLD-HERALD
Warren Buffett and actor Bill Murray talk during the 2024 Berkshire Hathaway Shareholder Shopping Day at CHI Health Center in Omaha on Friday, May 3, 2024.
NIKOS FRAZIER, THE WORLD-HERALD
Steve Mendlik, Oriental Trading Co. president and CEO, presents Warren Buffett with a shirt during the 2024 Berkshire Hathaway Shareholder Shopping Day at CHI Health Center in Omaha on Friday, May 3, 2024.
NIKOS FRAZIER, THE WORLD-HERALD
Steve Mendlik, Oriental Trading Co. president and CEO, shows Warren Buffett with a rubber duck during the 2024 Berkshire Hathaway Shareholder Shopping Day at CHI Health Center in Omaha on Friday, May 3, 2024.
NIKOS FRAZIER, THE WORLD-HERALD
Shareholders queue outside the CHI Health Center during the 2024 Berkshire Hathaway Shareholder Shopping Day in Omaha on Friday, May 3, 2024.
NIKOS FRAZIER, THE WORLD-HERALD
Shareholders queue outside the CHI Health Center during the 2024 Berkshire Hathaway Shareholder Shopping Day in Omaha on Friday, May 3, 2024.
NIKOS FRAZIER, THE WORLD-HERALD
Shareholders queue outside the CHI Health Center during the 2024 Berkshire Hathaway Shareholder Shopping Day in Omaha on Friday, May 3, 2024.
NIKOS FRAZIER, THE WORLD-HERALD
Shareholders queue outside the CHI Health Center during the 2024 Berkshire Hathaway Shareholder Shopping Day in Omaha on Friday, May 3, 2024.
NIKOS FRAZIER, THE WORLD-HERALD
Shareholders queue outside the CHI Health Center during the 2024 Berkshire Hathaway Shareholder Shopping Day in Omaha on Friday, May 3, 2024.
NIKOS FRAZIER, THE WORLD-HERALD
Shareholders file inside the CHI Health Center for the 2024 Berkshire Hathaway Shareholder Shopping Day in Omaha on Friday, May 3, 2024.
NIKOS FRAZIER, THE WORLD-HERALD
Diane and Lee Allen of Cromwell, Alabama, shop at See’s Candies during the 2024 Berkshire Hathaway Shareholder Shopping Day at CHI Health Center in Omaha on Friday, May 3, 2024.
NIKOS FRAZIER, THE WORLD-HERALD
Shareholders shop at Oriental Trading Co. during the 2024 Berkshire Hathaway Shareholder Shopping Day at CHI Health Center in Omaha on Friday, May 3, 2024.
NIKOS FRAZIER, THE WORLD-HERALD
A Warren Buffett cutout is seen at the Pampered Chef booth during the 2024 Berkshire Hathaway Shareholder Shopping Day at CHI Health Center in Omaha on Friday, May 3, 2024.
NIKOS FRAZIER, THE WORLD-HERALD
Shareholders stand around a Duracell F1 car during the 2024 Berkshire Hathaway Shareholder Shopping Day at CHI Health Center in Omaha on Friday, May 3, 2024.
NIKOS FRAZIER, THE WORLD-HERALD
Shareholders queue to purchase Squishmallows from the Jazwares booth during the 2024 Berkshire Hathaway Shareholder Shopping Day at CHI Health Center in Omaha on Friday, May 3, 2024.
NIKOS FRAZIER, THE WORLD-HERALD
Ben Ryan of Ireland tries out a flight simulator at the FlightSafety International booth during the 2024 Berkshire Hathaway Shareholder Shopping Day at CHI Health Center in Omaha on Friday, May 3, 2024.
NIKOS FRAZIER, THE WORLD-HERALD
Squishmallows of Charlie Munger and Warren Buffett are sold during the 2024 Berkshire Hathaway Shareholder Shopping Day at CHI Health Center in Omaha on Friday, May 3, 2024.
NIKOS FRAZIER, THE WORLD-HERALD
A look at a See’s Candies peanut brittle box during the 2024 Berkshire Hathaway Shareholder Shopping Day at CHI Health Center in Omaha on Friday, May 3, 2024.
NIKOS FRAZIER, THE WORLD-HERALD
Laurie Jones of Des Moines holds a sign as she and demonstrators gather across from the 2024 Berkshire Hathaway Annual Shareholders Meeting at the CHI Health Center to protest MidAmerican Energy’s coal energy in Omaha on Saturday, May 4, 2024. MidAmerican Energy is owned by Berkshire Hathaway.
NIKOS FRAZIER, THE WORLD-HERALD
Tyler Lamere, 19, of Winnebago, speaks as demonstrators gather across from the 2024 Berkshire Hathaway Annual Shareholders Meeting at the CHI Health Center to protest MidAmerican Energy’s coal energy in Omaha on Saturday, May 4, 2024. MidAmerican Energy is owned by Berkshire Hathaway.
NIKOS FRAZIER, THE WORLD-HERALD
Jordan Anderson of Omaha holds a sign as he and demonstrators gather across from the 2024 Berkshire Hathaway Annual Shareholders Meeting at the CHI Health Center to protest MidAmerican Energy’s coal energy in Omaha on Saturday, May 4, 2024. MidAmerican Energy is owned by Berkshire Hathaway.
NIKOS FRAZIER, THE WORLD-HERALD
Demonstrators gather across from the 2024 Berkshire Hathaway Annual Shareholders Meeting at the CHI Health Center to protest MidAmerican Energy’s coal energy in Omaha on Saturday, May 4, 2024. MidAmerican Energy is owned by Berkshire Hathaway.
NIKOS FRAZIER, THE WORLD-HERALD
Demonstrators gather across from the 2024 Berkshire Hathaway Annual Shareholders Meeting at the CHI Health Center to protest MidAmerican Energy’s coal energy in Omaha on Saturday, May 4, 2024. MidAmerican Energy is owned by Berkshire Hathaway.
NIKOS FRAZIER, THE WORLD-HERALD
Demonstrators hold signs as they chant during the 2024 Berkshire Hathaway Annual Shareholders Meeting at the CHI Health Center to protest MidAmerican Energy’s coal energy in Omaha on Saturday, May 4, 2024. MidAmerican Energy is owned by Berkshire Hathaway.
NIKOS FRAZIER, THE WORLD-HERALD
Karyn Constant of Omaha tries on a pair of sunglasses at the NFM booth during the 2024 Berkshire Hathaway Annual Shareholders Meeting at the CHI Health Center in Omaha on Saturday, May 4, 2024.
NIKOS FRAZIER, THE WORLD-HERALD
A pair of Squishmallows of Warren Buffett and Charlie Munger are seen with “sold out” signs during the 2024 Berkshire Hathaway Annual Shareholders Meeting at the CHI Health Center in Omaha on Saturday, May 4, 2024.
NIKOS FRAZIER, THE WORLD-HERALD
A young girl watches a model BNSF train during the 2024 Berkshire Hathaway Annual Shareholders Meeting at the CHI Health Center in Omaha on Saturday, May 4, 2024.
NIKOS FRAZIER, THE WORLD-HERALD
Shareholders walk past the CNBC TV set as Warren Buffett is seen speaking on a screen during the 2024 Berkshire Hathaway Annual Shareholders Meeting at the CHI Health Center in Omaha on Saturday, May 4, 2024.
NIKOS FRAZIER, THE WORLD-HERALD
Shareholders walk past the CNBC TV set as Warren Buffett is seen speaking on a screen during the 2024 Berkshire Hathaway Annual Shareholders Meeting at the CHI Health Center in Omaha on Saturday, May 4, 2024.
NIKOS FRAZIER, THE WORLD-HERALD
‘);
var s = document.createElement(‘script’);
s.setAttribute(‘src’, ‘https://assets.revcontent.com/master/delivery.js’);
document.body.appendChild(s);
window.removeEventListener(‘scroll’, throttledRevContent);
__tnt.log(‘Load Rev Content’);
}
}
}, 100);
window.addEventListener(‘scroll’, throttledRevContent);
}
The business news you need
Get the latest local business news delivered FREE to your inbox weekly.