No I in Buffett

23 April 2018 By John Foley Follow @johnsfoley

Building-supplies maker Knauf is getting more hostile in its $5.9 bln bid for USG, whose biggest shareholder Berkshire Hathaway seems ready to sell. More recent buyers may not like the meager premium. Investing alongside Warren Buffett is no guarantee of aping his success.

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Germany-based building-products maker Knauf on April 23 urged investors in its U.S. rival USG to vote against reappointing four directors, amid its hostile attempt to take over the company.

Knauf offered $42 per share in a March 15 letter, whose contents were made public on March 26. USG’s board said the offer was “substantially below our intrinsic value.”

Knauf already owns 10.5 percent of USG’s stock. A further 31 percent is owned by Warren Buffett’s investment company Berkshire Hathaway, which first bought shares in 2000.

Berkshire Hathaway has offered to sell Knauf the option to buy its shares for at least $42 in the event that it can consummate a deal at that price.

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