Tags: Buffett | Dow | Chemical | Stake

Buffett's $3 Billion Dow Chemical Stake May Be Repaid After Kuwait Case

Thursday, 26 Jul 2012 06:58 AM


Warren Buffett’s investment in Dow Chemical Co., which generated $255 million a year for his Berkshire Hathaway Inc., may be redeemed with proceeds the chemical maker will get as part of a legal dispute with Kuwait.

Dow Chief Executive Officer Andrew Liveris said on a conference call that the award may be used to improve the company’s finances. Asked about preferred shares, which include $3 billion held by Berkshire and $1 billion that were sold to Kuwait’s sovereign wealth fund, the CEO said, “that’s the balance sheet, and I would say it’s included.”

Dow sold the securities to help fund the 2009 purchase of Rohm & Hass Co. The preferred shares pay an 8.5 percent annual dividend. The yield is about 4 percentage points higher than on Dow’s 30-year notes due in 2041, according to data compiled by Bloomberg.

“We have the expensive preferreds on the balance sheet that will be expensive to retire prematurely,” Liveris said. “Having said that, they’re very accretive, the immediate time” they’re retired, he said.

© Copyright 2015 Bloomberg News. All rights reserved.

Around the Web

Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Zip Code:
Privacy: We never share your email.

You May Also Like
Around the Web
Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

© Newsmax Media, Inc.
All Rights Reserved