Author Topic: Berkshire aquisition of Pilot Flying J - long term 80 per cent  (Read 3011 times)

John Hjorth

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Re: Berkshire aquisition of Pilot Flying J - long term 80 per cent
« Reply #10 on: October 08, 2017, 03:49:44 AM »
Thank you, scorpioncapital,

I found it: Omaha World-Herald: Warren Watch: In contest to pick next $5 billion-plus purchase by Warren Buffett, no one saw this comming.

The article refers to a Bloomberg article, which is here: Bloomberg: Buffett's Berkshire Hathaway Buys Stake in Pilot Flying J.

In the article:

Quote
Financial terms of the deal weren't disclosed, but the Bloomberg Billionaraires Index values the business at $9.1 billion, and calculates the Haslam family's 50.1 percent stake at $4.5 billion.
« Last Edit: October 08, 2017, 03:59:23 AM by John Hjorth »
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longtermdave

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Re: Berkshire aquisition of Pilot Flying J - long term 80 per cent
« Reply #11 on: November 28, 2017, 05:53:50 PM »
gg & xo 1,

Sound sceptisism has never hurt anyone. There was a link to an interview with Mr. Buffett here on CoBF yesterday, where Mr. Buffett mentioned, that he was aware of that case.

Do you have some sources to share, to drag us all out of our ignorance?
Here is a link to a Department of Justice news release: https://www.justice.gov/usao-edtn/pr/pilot-flying-j-enters-criminal-enforcement-agreement

Here is a link to a local Tennessee paper with an update:  http://www.knoxnews.com/story/news/crime/2017/07/25/whos-still-headed-trial-pilot-flying-j-case/506800001/

I live in Cleveland (where Mr. Haslam owns the NFL Cleveland Browns), so it was a very large story locally. 

With respect to BRK investing in other ethically questionable companies, perhaps, although I believe Pilot is different than buying a publicly traded stock in that this will be a wholly owned subsidiary eventually and the case is still playing out.  As best I can tell, the initial thoughts that criminal charges would reach the CEO and ownership are not going to play out.  Perhaps WEB knows enough to say for sure.  But that was the biggest surprise from my perspective - this could end up with BRK buying into a private business where it needs promptly to replace management and that I didn't see that discussed by analysts.  And it could be that the risk is priced into the deal, but until we know pricing for the deal, I don't know what to make of that.

Haslam sounds complicit to me, listening to today's summary from the Knoxville News Sentinel reporter:
https://www.yahoo.com/sports/jury-fraud-case-hears-jimmy-183908147.html  (follow the video update link)