Berkshire Hathaway to Own 1.75% of Burger King/Tim Horton’s on December 12

By Dr. David Kass PhD, Harvard University

When Burger King’s (BKW)  acquisition of Tim Horton’s (THI) closes on December 12, Berkshire Hathaway (BRK.A, BRK.B) will purchase $3 billion of 9% preferred shares and receive a warrant to purchase 1.75% of the common shares of the combined company at an exercise price of $0.01 per common share.  Berkshire has informed Burger King that it intends to exercise the warrant promptly following the closing of the transaction.  Berkshire will then own 8.4 million shares with a current market value of about $300 million.


David Einhorn Buys Three New Stocks: These Are The Names And Theses (Q3 Letter)

david einhorn, reading, valuewalk, internet, investment research, Greenlight Capital, hedge funds, Greenlight Masters, famous hedge fund owners, big value investors, websites, books, reading financials, investment analysis, shortselling, investment conferences, shorting, short biasDavid Einhorn's Greenlight Capital funds returned 5.9% in the third quarter of 2020, compared to a gain of 8.9% for the S&P 500 in the same period. This year has been particularly challenging for value investors. Growth stocks have surged as value has struggled. For Greenlight, one of Wall Street's most established value-focused investment funds, Read More

From the Burger King/Tim Horton’s prospectus:

“In connection with the transactions,
Berkshire Hathaway Inc. (“Berkshire”) will purchase for an aggregate purchase price of $3,000,000,000 (USD),
(a) Class A 9% cumulative compounding perpetual voting preferred shares of Holdings (the “preferred shares”) and
(b) a warrant to purchase Holdings common shares (the “warrant”), which shares issuable pursuant to the warrant
will represent 1.75% of the fully diluted common shares of Holdings as of the completion of the transactions, at an
exercise price per Holdings common share of $0.01. The warrant may be exercised until the fifth anniversary of the
closing of the transactions. Berkshire has informed Holdings that it intends to exercise the warrant promptly
following the closing of the transactions.”