Berkshire Hathaway's $8.5 Billion Housing Bet Faces a Shareholder Vote on July 22. Here's What's at Stake.
Greg Abel's "big" move to buy Taylor Morrison Home is going to a vote, but the biggest risk isn't to Berkshire Hathaway.
Overview
Berkshire Hathaway (NYSE: BRKA)(NYSE: BRKB) has gone through an important leadership transition, with Greg Abel taking over as CEO from Warren Buffett. The big question is how Abel will differ from Buffett as an investor and leader. Abel's planned acquisition of Taylor Morrison Home (NYSE: TMHC) was the first indication. Here's what is at stake as the deal faces its first big test.
Berkshire Hathaway is a $1 trillion market-cap industrial conglomerate and financial giant with a widely diversified business. Taylor Morrison is a $6.6 billion market cap homebuilder, but that market cap includes the price gain following Berkshire Hathaway's acquisition offer. Berkshire Hathaway offered an over 20% premium for Taylor Morrison when it agreed to buy it.
Image source: Getty Images.
Details
Source
Originally published at www.fool.com.