NU Online News Service, May 24, 3:35 p.m. EDT–Scottish Power PLC agreed to sell PacifiCorp, the leading electricity provider in the Northwest, to MidAmerican Energy, a subsidiary of Warren Buffet's Berkshire Hathaway Inc.
The terms of the deal include $5.1 billion in cash and an estimated $4.3 billion in debt. Analysts at Dresdner Kleinwort Wasserstein said they believe that "PacifiCorp was sold for $166 million more than its valuation of the unit."
The move to have a greater presence in the energy market is another example of Berkshire Hathaway's efforts to spend some of the more than $43 billion in cash and cash equivalents it had earned in 2004.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
