Berkshire Hathaway Inc. won’t make an offer for full control of Occidental Petroleum Corp., Warren Buffett said Saturday, tempering speculation he was seeking to own the energy producer after spending months snapping up its shares.
(Bloomberg) — Berkshire Hathaway Inc. won’t make an offer for full control of Occidental Petroleum Corp., Warren Buffett said Saturday, tempering speculation he was seeking to own the energy producer after spending months snapping up its shares.
Berkshire didn’t rule out buying more stock of the Houston-based firm, adding it may or may not seek further purchases. The Berkshire chief executive officer also praised its CEO, Vicki Hollub, at Berkshire’s annual meeting in Omaha, Nebraska.
Berkshire is Occidental’s largest shareholder, owning a 23.6% stake, according to data compiled by Bloomberg. Berkshire has boosted its wagers on the company under Hollub, who has made aggressive moves to boost returns to shareholders by reining in capital-intensive production growth in favor of dividends and share buybacks for investors.
Berkshire won approval from US regulators last year to acquire as much as 50% of the firm, prompting further speculation Berkshire would seek full control.
In 2019, Buffett aided Hollub’s pursuit of Anadarko Petroleum Corp. by agreeing to invest $10 billion in Occidental, a pact that included both preferred shares and warrants. Those warrants allow Berkshire to buy as many as 83.86 million shares in Occidental at a price of $59.62.
Buffett has frequently praised Hollub’s leadership, a sign he was all-in on the firm. Occidental’s share price is down about 3.7% year to date.
(Updates with more detail from first paragraph.)
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