On 24 May 2005 announced Warren Buffett, chairman and chief executive officer of Berkshire Hathaway Inc. that MidAmerican Energy Holdings Company, a subsidiary of Berkshire Hathaway would acquire the electric utility PacifiCorp. In Buffett’s biggest deal since 1998, and the second most of his career, would MidAmerican PacifiCorp from its parent company, Scottish Power plc, for $ 5.1 billion euros in cash and $ 4.3 billion in debt and preferred stock. The acquisition of PacifiCorp … Read more »

On 24 May 2005 announced Warren Buffett, chairman and chief executive officer of Berkshire Hathaway Inc. that MidAmerican Energy Holdings Company, a subsidiary of Berkshire Hathaway would acquire the electric utility PacifiCorp. In Buffett’s biggest deal since 1998, and the second most of his career, would MidAmerican PacifiCorp from its parent company, Scottish Power plc, for $ 5.1 billion euros in cash and $ 4.3 billion in debt and preferred stock. The acquisition of PacifiCorp renewed public interest in his sponsor, Warren Buffett. In many ways, he was an anomaly. What were the basic principles that Buffett? Could these broadly in the 21st Century are applied, or they were unique Buffett and his time? From an understanding of these principles, analysts hoped for the acquisition of PacifiCorp light. What were Buffett’s probable motives in the acquisition? What Buffett’s offer say about his assessment of PacifiCorp and how it would compare with assessments for other regulated utilities? If the acquisition of Berkshire PacifiCorp prove to be a success? As Buffett would define success?
This is a Darden case study.
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from
Robert F. Bruner,
Sean Carr
Source: Darden School of Business
21 pages.
Publication Date: Nov 17,, 2005. Prod #: UV0016-PDF-ENG
Warren E. Buffett 2005 HBR case solution