Berkshire Hathaway adjusts price for Wesco deal

AP News
Posted: Jun 23, 2011 10:16 AM
Berkshire Hathaway adjusts price for Wesco deal

The final price Warren Buffett's Berkshire Hathaway will pay for the 19.9 percent of Wesco Financial it doesn't already own has been set at $545.4 million.

The price announced Thursday is more than $2 million less than the $547.6 million that Berkshire offered when the deal was announced in February. The price was adjusted downward mostly because the value of Wesco's stock holdings declined.

Berkshire is now offering $385 in cash and Class B stock for each of the more than 1.4 million Wesco shares it doesn't own. Wesco has been an indirect subsidiary of Berkshire since 1983.

Wesco shareholders will vote on the deal on Friday. Wesco's board recommends it.

Omaha, Neb.-based Berkshire owns a broad range of 80 subsidiaries. Pasadena, Calif.-based Wesco is a similar conglomerate but smaller and less diverse.