Warren Buffet leaning toward USG acquisition
While USG’s board of directors has opposed a proposed acquisition by German building materials firm Knauf, the company’s largest shareholder appears to be favoring the move.
Warren Buffet and his Berkshire Hathaway company are planning to vote against four board nominees standing for election at USG’s upcoming annual shareholders meeting. And Buffet is USG’s largest shareholder with a 31% ownership of the Chicago building material manufacturer’s stock.
Last month Knauf proposed a $5.9 billion bid to buy USG with an offer of $42 per share. The company has since said that shareholders should vote against the board members standing for election in May.
Based in Iphofen, Germany, Knauf manufactures building materials and operates 220 factories worldwide. The company has invested heavily in USG since 2000 and is the company’s second-largest shareholder behind Buffet.
Shares of USG have reached their highest level in more than a year since talk of a acquisition began last month and hovered just below $41.
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