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OMAHA, Neb. – Warren Buffett said Saturday that he does not plan to take full control of Berkshire Hathaway. Occidental PetroleumAn oil giant where it has acquired a stake north of 20%.
“There’s been speculation about us buying control, we’re not going to buy control,” the ‘Oracle of Omaha’ said at Berkshire’s annual shareholder meeting. “We don’t know what to do with it.”
In August last year, Berkshire received regulatory approval to buy a 50% stake. Since then, Buffett has been steadily increasing his stake, including this year, increasing the group’s stake in the Houston-based energy producer to 23.5%. The move had sparked speculation that the 92-year-old investor might take over the entire company.
Buffett said, “We will not make any offer for control of Occidental, but we like the shares we have.” “We may or may not have more in the future, but we certainly have warrants on what we got on a very large amount of stock in the original deal around $59 a share, and the warrants are long As long as time goes on, and I’m glad we have them.”
Berkshire owns $10 billion of Occidental preferred stock, and has warrants to buy another 83.9 million common shares for $5 billion, or $59.62 each. The warrants were received as part of the company’s 2019 deals which helped finance Purchase of Anadarko by Occidental,
After more than doubling in 2022, Occidental shares have fallen about 3% this year. The stock was the best-performing name in the S&P 500 last year.
— CNBC’s Sarah Min contributed reporting.
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