Precision Castparts Corp.'s stock <link http: www.marketwatch.com investing stock _blank external-link-new-window external link in new>PCP, +0.04% soared 19% in premarket trade Monday, after the maker of aircraft components and energy-production equipment agreed to be acquired by Warren Buffett's Berkshire Hathaway in a cash deal valued at $37.2 billion, including debt, which would make it the famed billionaire investor's biggest ever acquisition. Under terms of the deal, Berkshire will pay $235 for each Precision Castparts share outstanding, which represents 21% premium to Friday's closing price. The company's market value at Friday's close was $26.7 billion, according to FactSet.
The Wall Street Journal had<link http: www.marketwatch.com story berkshire-hathaway-nears-deal-to-buy-precision-castparts-2015-08-08-12103303 _blank external-link-new-window external link in new> reported over the weekend that a deal was imminent. The deal is expected to close during the first quarter of 2016. "I've admired PCC's operation for a long time," said Berkshire Chief Executive Buffett. "For good reasons, it is the supplier of choice for the world's aerospace industry, one of the largest sources of American exports." Precision Castparts' stock has lost 20% year to date through Friday, while the S&P 500 has gained 0.9%. Berkshire's stock, which dropped 1.8% in premarket trade, has lost 4.4% this year.
Source: marketwatch.com
×
