Warren Buffett Bets on Dubai Real Estate

Warren Buffett chairman and CEO of Berkshire Hathaway gestures during a game of bridge outside Berkshire-owned Borsheims jewelry store in Omaha Neb. Sunday

Warren Buffett chairman and CEO of Berkshire Hathaway gestures during a game of bridge outside Berkshire-owned Borsheims jewelry store in Omaha Neb. Sunday

Warren Buffett's Berkshire Hathaway Inc committed $10 billion on Tuesday to Occidental Petroleum Corp's $38 billion cash-and-stock bid for Anadarko Petroleum Corp, boosting its chances of snatching a deal from Chevron Corp.

Anadarko said Monday that it was reopening acquisition talks with Occidental, setting up a possible faceoff with Chevron over prized shale oil assets in the Permian Basin.

Berkshire Hathaway's $10 billion preferred stock commitment tips support to Occidental's Anadarko bid, but Chevron's balance-sheet heft and ability to digest better-fitting assets still suggests to us Chevron can remain ahead if it ups its offer. Anadarko has previously expressed reservations about the risk of Occidental having to get any deal voted through by its own shareholders. The Berkshire investment could help relieve Occidental analyst and shareholder concerns.

Adds bond prices in sixth paragraph.

The investment is contingent upon Occidental entering into a deal with Anadarko and completing its proposed acquisition.

BYU valedictorian comes out as gay during graduation speech
Easton tweeted later that evening: "I am grateful to @byu_fhss for allowing me to share my authentic and vulnerable self to so many in our college".

Last December, an insurance unit of the billionaire investor's Berkshire Hathaway opened in the Dubai International Financial Centre, offering specialty and commercial insurance and reinsurance products with a focus on construction, energy, property, marine, casualty and executive and professional segments. "This more permanent potential financing is being put in place rather quickly and is more expensive than we would have thought Oxy could have accessed".

Anadarko accepted a $33 billion cash-and-stock deal from Chevron on April 12 that would have the California-based oil giant pay the equivalent of $65 per share.

"Before this announcement came out, my opinion was that Chevron would have to increase their bid to be competitive", said Bill Nygren, chief investment officer of Harris Associates, which manages US$120 billion and holds about a 3 per cent stake in Anadarko.

Occidental and Chevron, two of the largest oil and gas producers in the Permian by production volumes, argue they can best squeeze more oil from Anadarko's 240,000 acres in the area.

The two companies control land adjacent to Anadarko's properties and expect a deal will add deposits that can produce supplies for decades using low-priced drilling techniques.

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