Morning Agenda: Buffett Finds a Big Deal in Energy
Warren E. Buffett is a great activity to develop his energy empire by offering to buy TXU Energy, the giant power in Texas bankruptcy.
Its Berkshire Hathaway Energy has agreed to pay 9 billion for the future of energy, which would give it the Oncor utility arm of the company.
The agreement, Oncor gives an implicit value of 11.25 billion and a company value of 18 billion, is the largest public offering that Buffett announced since the purchase of Precision Castparts at 37 billion.
And it would strengthen a Berkshire unit as the billionaire hired to generate consistent returns, while requiring only routine reinvestment.
The acquisition would open a new chapter for Future Energy, which in its previous life, TXU has been the largest leveraged buyout in history.
But the 2007 agreement by Kohlberg Kravis Roberts, TPG and the arms of Goldman Sachs were soon afflicted during the credit crisis. The company filed an application for bankruptcy protection three years ago.
• The agreement would expand the area supervised by Gregory E. Abel, head of the Berkshire Energy Division. He is the main candidate to replace M. Buffett as CEO of Berkshire.
• M. Buffett is no stranger to the Energy of the Future. Berkshire bought $ 2 billion in future energy bonds, which it then sold at a loss of 873 million. “It was a big mistake,” he wrote later in a letter to investors.
• The plan requires the approval of the state Energy Regulators, which have already rejected two previous efforts to sell Oncor.
Malone combines QVC and Home Shopping Network
The two most well-known home-buying names come together in a 2.1 billion deal, caused by billionaire John C. Malone.
The merger of QVC and Home Shopping Network comes as Amazon dominates online shopping, Walmart e-commerce pushes and a growing number of retailers are struggling to survive. In this context, QVC and HSN saw slow sales.
This is an agreement orchestrated by M. Malone, whose interactive Freedom has QVC and buys 62 percent of HSN that it does not yet own, there are unusual complexities:
• After purchasing HSN in the entirety of the offer, interactive freedom plans to ship its non-real assets, including broadband cable operator challenges and Charter of Freedom
• The remaining operations, including Zulily, a flash sales site that Liberty bought for 2.4 billion two years ago, will be renamed the QVC Group.
The spin-off, a classic Malone maneuver, designed to avoid corporate taxes by delivering shares to the QVC group shareholders instead of a cash payment.
G. E., Canon and Merck accused of antitrust violations
The European Union’s antitrust regulator has accused General Electric, Canon and Merck of violating the rules blocking the merger as part of an offensive against reducing the angle in the merger clearance process, the Wall Street Journal and the Financial Times.
The regulator said that G. E. Merck did not respond to relevant research projects. General Electric has misled the agency when it realized an acquisition of LM Wind Power of $ 1.65 billion, the European Union said. Merck will be subject to control of its 17 billion deal from Sigma-Aldrich, a US provider of laboratory testing equipment.
Canon could have violated the implementation rules of the 5.9 billion agreement for Toshiba Medical Systems unit before recording the acquisition by the European regulator, said the agency.
Authorizations for bids remain valid, but if the regulator finds that companies provide false or misleading information, they could be fined up to 1 p. 100 of their income in general. For Canon, it could receive a fine of up to 10 percent.