NEW YORK (
) -- Warren Buffett's
has offered to purchase the remainining 19.9% of
Wesco Financial Corp.
that it doesn't already own.
Berkshire disclosed the plans in a filing with the
Securities and Exchange Commission
on Thursday. It's looking to swap either cash or Class B
shares for the rest of Wesco "at the book value per share of Wesco as of a time reasonably contemporaneous with the closing of such a transaction," the filing states.
Wesco shares surged nearly 12% on the news to close at $363. Volume of 97,360 was well beyond the issue's trailing three-month daily average of under 10,000. Berkshire's Class B shares slipped 43 cents, finishing the session at $76.37.
Berkshire said in the filing it intends to discuss the deal with Wesco's independent directors, and that it would not proceed with the transaction unless it meets with the approval of both boards.
Wesco reported its second-quarter results on August 6, posting consolidated net income of $31.3 million, or $4.39 a share, up from a year-ago equivalent profit of $12.9 million, or $1.93 a share. In the Form 10-Q related to the second quarter, the Pasadena, Calif.-based company estimated shareholders' equity stood at $2.51 billion, or $352.66 a share, as of June 30, down from $2.55 billion, or $358.26 a share, at the end of 2009.
In addition to a number of insurance operations, Wesco also operates the CORT furniture rental business, and Precision Steel Centers Inc., a steel service center business.
Written by Michael Baron in New York.
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