Latest news with #Nebraska-based
Reuters
16 hours ago
- Business
- Reuters
Buffett's Berkshire sells one-third of VeriSign stake for $1.23 billion
July 28 (Reuters) - Berkshire Hathaway (BRKa.N), opens new tab sold about one-third of its stake in VeriSign (VRSN.O), opens new tab, an internet infrastructure and domain name registry company that Warren Buffett's conglomerate has invested in since 2012, VeriSign said on Monday. The sale of 4.3 million VeriSign shares at $285 each generated gross proceeds of about $1.23 billion, reducing Berkshire's ownership stake to 9.6% from 14.2%. Buffett's company may sell an additional 515,032 shares to meet demand, and VeriSign will receive no proceeds from the sale, VeriSign said. VeriSign, based in Reston, Virginia, said the sale was intended to reduce Berkshire's stake to below 10%, a threshold that triggers regulatory obligations. The price was a 6.9% discount to VeriSign's closing price of $305.98. In after-hours trading, VeriSign shares fell 5.9% to $288.00. Berkshire did not immediately respond to a request for comment outside business hours. Buffett's company owned about 13.29 million VeriSign shares as of March 31, a regulatory filing shows. That stake was worth about $4.07 billion before the sale, based on the $305.98 closing price. VeriSign traded at less than one-sixth that level when Berkshire began buying. Berkshire ended March with $347.7 billion of cash, and through that month was a net seller of stocks for 10 straight quarters. It had nevertheless been adding to its VeriSign stake as recently as January. Berkshire's smaller investments in technology-related companies have often been spearheaded by Buffett's portfolio managers, Todd Combs and Ted Weschler. Buffett, 94, has run Omaha, Nebraska-based Berkshire since 1965. He is expected to step down as chief executive at the end of the year and be replaced by Vice Chairman Greg Abel, 63. Buffett would remain chairman. JPMorgan Securities underwrote the VeriSign share sale.
Al Jazeera
17 hours ago
- Business
- Al Jazeera
Union Pacific to buy Norfolk Southern for $85bn
Union Pacific has announced its intentions to buy its smaller rival, Norfolk Southern, which would create the first coast-to-coast freight rail operator in the United States and reshape the movement of goods from grains to autos across the US. The Omaha, Nebraska-based railroad giant announced the proposed $85bn deal on Tuesday. If the merger is approved, the transaction would be the largest-ever buyout in the railroad sector. Union Pacific has a stronghold in the western two-thirds of the US, with Norfolk's 31,382 km (19,500-mile) network that primarily spans 22 eastern states. The two railroads are expected to have a combined enterprise value of $250bn and would unlock about $2.75bn in annualised synergies, the companies said. The $320 per share price implies a premium of 18.6 percent for Norfolk from its close on July 17, when reports of the merger first emerged. The companies said last week on Thursday that they were in advanced discussions for a possible merger. The deal will face lengthy regulatory scrutiny amid union concerns about potential rate increases, service disruptions and job losses. The 1996 merger of Union Pacific and Southern Pacific had temporarily led to severe congestion and delays across the Southwest. The deal reflects a shift in antitrust enforcement under US President Donald Trump's administration. Executive orders aimed at removing barriers to consolidation have opened the door to mergers that were previously considered unlikely. Surface Transportation Board Chairman Patrick Fuchs, appointed in January, has advocated for faster preliminary reviews and a more flexible approach to merger conditions. Even under an expedited process, the review could take from 19 to 22 months, according to a person involved in the discussions. Major railroad unions have long opposed consolidation, arguing that such mergers threaten jobs and risk disrupting rail service. 'We will weigh in with the STB [regulator] and with the Trump administration in every way possible,' said Jeremy Ferguson, president of the SMART-TD union's transport division, after the two companies said they were in advanced talks last week. 'This merger is not good for labour, the rail shipper/customer or the public at large,' he said. The companies said they expect to file their application with the STB within six months. The SMART-TD union's transport division is North America's largest railroad operating union with more than 1,800 railroad yardmasters. The North American rail industry has been grappling with volatile freight volumes, rising labour and fuel costs and growing pressure from shippers over service reliability, factors that could further complicate the merger. Industry consolidation The proposed deal has also prompted competitors BNSF, owned by Berkshire Hathaway, and CSX, to explore merger options, people familiar with the matter said. Agents at the STB are already conducting preparatory work, anticipating they could soon receive not just one, but two megamerger proposals, a person close to the discussions told Reuters on Thursday. If both mergers are approved, the number of Class I railroads in North America would shrink to four from six, consolidating major freight routes and boosting pricing power for the industry. The last major deal in the industry was the $31bn merger of Canadian Pacific and Kansas City Southern that created the first and only single-line rail network connecting Canada, the US and Mexico. That deal, finalised in 2023, faced heavy regulatory resistance over fears it would curb competition, cut jobs and disrupt service, but was ultimately approved. Union Pacific is valued at nearly $136bn, while Norfolk Southern has a market capitalisation of about $65bn, according to data from LSEG. As of 12:15pm in New York (16:15 GMT), Union Pacific's stock is down 3.9 percent, and Norfolk Southern is down 3.2 percent. Competitor CSX is also trending down. The stock has fallen 1.6 percent since the market opened this morning.
Yahoo
19 hours ago
- Business
- Yahoo
VeriSign falls after Buffett's Berkshire sells $1.23 billion stock
By Jonathan Stempel (Reuters) -VeriSign shares fell on Tuesday after Warren Buffett's Berkshire Hathaway sold nearly one-third of its stake in the internet infrastructure and domain name registry company for $1.23 billion. Berkshire had been VeriSign's largest shareholder before selling 4.3 million shares at $285 each on Monday, a 6.9% discount to Monday's closing price. Shares of VeriSign fell more than 7% in early trading on Tuesday. The sale reduced Berkshire's ownership stake in the Reston, Virginia-based company to 9.6% from 14.2%. Another 515,032 shares may be sold to meet demand. Berkshire's remaining holdings are subject to a 365-day lock-up agreement. VeriSign said the sale was intended to reduce Berkshire's stake to below 10%, a threshold that triggers regulatory obligations. Berkshire did not respond to a request for comment. Buffett's company began investing in VeriSign in 2012, and prior to the sale owned nearly 13.3 million shares worth about $4.07 billion. VeriSign shares had risen more than six-fold since Berkshire began buying. Berkshire's smaller investments in technology companies have often been spearheaded by Buffett's portfolio managers, Todd Combs and Ted Weschler. Baird Equity Research analyst Rob Oliver, who rates VeriSign "outperform," wrote that the sale "could drive near-term weakness and questions around Berkshire's ultimate intentions with the stock. We continue to view the story as all about domain growth, which is strong and improving." Berkshire ended March with $347.7 billion of cash, and will update that total when it releases second-quarter results on Saturday. Buffett, 94, has run the Omaha, Nebraska-based conglomerate since 1965. Berkshire also owns close to 200 businesses including the BNSF railroad and Geico car insurance, and stocks such as Apple and American Express. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
19 hours ago
- Business
- Reuters
VeriSign falls after Buffett's Berkshire sells $1.23 billion stock
July 29 (Reuters) - VeriSign (VRSN.O), opens new tab shares fell on Tuesday after Warren Buffett's Berkshire Hathaway (BRKa.N), opens new tab sold nearly one-third of its stake in the internet infrastructure and domain name registry company for $1.23 billion. Berkshire had been VeriSign's largest shareholder before selling 4.3 million shares at $285 each on Monday, a 6.9% discount to Monday's closing price. Shares of VeriSign fell more than 7% in early trading on Tuesday. The sale reduced Berkshire's ownership stake in the Reston, Virginia-based company to 9.6% from 14.2%. Another 515,032 shares may be sold to meet demand. Berkshire's remaining holdings are subject to a 365-day lock-up agreement. VeriSign said the sale was intended to reduce Berkshire's stake to below 10%, a threshold that triggers regulatory obligations. Berkshire did not respond to a request for comment. Buffett's company began investing in VeriSign in 2012, and prior to the sale owned nearly 13.3 million shares worth about $4.07 billion. VeriSign shares had risen more than six-fold since Berkshire began buying. Berkshire's smaller investments in technology companies have often been spearheaded by Buffett's portfolio managers, Todd Combs and Ted Weschler. Baird Equity Research analyst Rob Oliver, who rates VeriSign "outperform," wrote that the sale "could drive near-term weakness and questions around Berkshire's ultimate intentions with the stock. We continue to view the story as all about domain growth, which is strong and improving." Berkshire ended March with $347.7 billion of cash, and will update that total when it releases second-quarter results on Saturday. Buffett, 94, has run the Omaha, Nebraska-based conglomerate since 1965. Berkshire also owns close to 200 businesses including the BNSF railroad and Geico car insurance, and stocks such as Apple (AAPL.O), opens new tab and American Express (AXP.N), opens new tab.
Time of India
a day ago
- Business
- Time of India
Buffett's Berkshire sells one-third of VeriSign stake for $1.23 billion
Berkshire Hathaway sold about one-third of its stake in VeriSign , an internet infrastructure and domain name registry company that Warren Buffett 's conglomerate has invested in since 2012, VeriSign said on Monday. The sale of 4.3 million VeriSign shares at $285 each generated gross proceeds of about $1.23 billion, reducing Berkshire's ownership stake to 9.6% from 14.2%. Buffett's company may sell an additional 515,032 shares to meet demand, and VeriSign will receive no proceeds from the sale, VeriSign said. VeriSign, based in Reston, Virginia, said the sale was intended to reduce Berkshire's stake to below 10%, a threshold that triggers regulatory obligations. The price was a 6.9% discount to VeriSign's closing price of $305.98. In after-hours trading, VeriSign shares fell 5.9% to $288.00. Berkshire did not immediately respond to a request for comment outside business hours. Buffett's company owned about 13.29 million VeriSign shares as of March 31, a regulatory filing shows. That stake was worth about $4.07 billion before the sale, based on the $305.98 closing price. VeriSign traded at less than one-sixth that level when Berkshire began buying. Berkshire ended March with $347.7 billion of cash, and through that month was a net seller of stocks for 10 straight quarters. It had nevertheless been adding to its VeriSign stake as recently as January. Berkshire's smaller investments in technology-related companies have often been spearheaded by Buffett's portfolio managers, Todd Combs and Ted Weschler. Buffett, 94, has run Omaha, Nebraska-based Berkshire since 1965. He is expected to step down as chief executive at the end of the year and be replaced by Vice Chairman Greg Abel, 63. Buffett would remain chairman. JPMorgan Securities underwrote the VeriSign share sale.
