FIN 3717 Chapter : Case 2 Warren E Buffet Executive Summary
Document Summary
Warren edward buffet is the primary shareholder, chairman and ceo of. At 74, he was one of the world"s richest men with a net worth estimated by forbes magazine at billion dollars. On may 24, 2005, he announced that midamerican energy holdings company would acquire the electric utility. Midamerican energy holdings company is a subsidiary of berkshire. Midamerican would purchase pacificorp from scottish power plc for . 1 billion dollars in cash and . 3 billion dollars in liabilities and preferred stock. Is midamerican energy holdings, a subsidiary of berkshire hathaway, paying. The acquisition of pacificorp was a good investment target because it is a leading, low-cost energy producer and distributor, which served 1. 6 million customers in six states in the western united states. Pacificorp has very low production costs because some 15% of its capacity comes from hydroelectric sources, which are considered some of the cheapest and most environmentally friends means of generating power.
