Latest news with #capitalallocation
Yahoo
5 days ago
- Business
- Yahoo
Warren Buffett Warns Acquisitions Can Feel Like ‘Ecstasy' But Says ‘Corporate Mating' Can Result In ‘Corporate Pregnancy'
Warren Buffett, chairman and CEO of Berkshire Hathaway (BRK.B) (BRK.A), is known for his colorful language and concise business wisdom. Among his more memorable remarks is a caution aimed at corporate executives involved in mergers and acquisitions: 'If corporate pregnancy is going to be the consequence of corporate mating, the time to face that fact is before the moment of ecstasy.' The quote, delivered in Buffett's 1982 letter to shareholders, captures his broader philosophy on capital allocation and responsible corporate management. In this metaphor, "corporate mating" refers to the process of deal-making — specifically mergers or acquisitions — while "pregnancy" signifies the long-term financial, operational, and strategic obligations that result. Buffett's point is clear: executives must consider the full implications of a transaction before committing to it, rather than acting out of short-term excitement or the thrill of expansion. More News from Barchart 1 'Strong Buy' Defense Stock to Snag Instead of Palantir Is Qualcomm the Best Semiconductor Stock to Buy Right Now? A $10 Billion Reason to Buy Palantir Stock Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! This observation emerged in a section of the letter where Buffett criticized value-destroying stock-for-stock acquisitions. He emphasized that using undervalued equity to purchase businesses at full or inflated prices can erode shareholder value. In this scenario, the 'moment of ecstasy' refers to the adrenaline and optimism often associated with sealing a deal, while the 'pregnancy' symbolizes the lasting consequences that may not be fully appreciated until much later — when the integration challenges, cultural mismatches, or financial burdens become evident. Buffett's commentary was not hypothetical. At the time, he had narrowly avoided what he later described as a poor acquisition — one that, if completed, could have consumed significant time and resources without clear benefit. His near-miss gave weight to his broader point: prudent business leaders must remain rational and measured, especially when faced with the allure of transformational transactions. What makes Buffett's perspective especially authoritative is his long track record of disciplined investing and deal-making. Under his leadership, Berkshire Hathaway has grown into a multinational conglomerate with a reputation for acquiring high-quality businesses at fair prices — and for avoiding deals driven by emotion or market trends. His insistence on aligning acquisitions with intrinsic value and long-term strategy, rather than short-term enthusiasm, has made his approach widely studied by investors and executives alike. In today's corporate landscape, the sentiment behind Buffett's warning remains highly relevant. M&A activity continues to be a significant driver of headlines and shareholder speculation. While many deals are framed as growth opportunities or strategic fits, history has shown that not all mergers deliver value. Cultural integration, synergies, debt loads, and shifting market conditions can all turn promising combinations into operational burdens. Buffett's quote serves as a timeless reminder that the time to assess risk, value, and fit is before a commitment is made — not after. Just as in personal relationships, the most lasting consequences of corporate decisions often follow moments of intense excitement. And as Buffett warns, those moments must be met with clear eyes and careful judgment — not just enthusiasm for the deal itself. On the date of publication, Caleb Naysmith did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on 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
07-08-2025
- Business
- Reuters
Germany's Uniper to invest $5.8 billion through 2030 in strategy revamp
FRANKFURT, Aug 7 (Reuters) - Germany's Uniper ( opens new tab will invest 5 billion euros ($5.8 billion) through 2030, the state-owned utility said on Thursday, in a strategy update that reflects more sobering expectations for green energy markets. Uniper last year said it would slow down an initial plan of investing 8 billion euros in its transformation by 2030, citing falling returns on renewable projects as well as a delay in the development of hydrogen markets. As a result, several European utilities, including larger peer RWE have come under pressure from investors to review their capital allocation, forcing them to trim ambitious spending plans. "The regulatory and geopolitical environment is challenging," Uniper CEO Michael Lewis said, citing delays to German government plans to build new gas-fired power plants as well as well as a slowing hydrogen ramp-up. "Consequently, we have decided to sharpen the strategic focus of our portfolio through 2030 even more on activities and projects that generate reliable earnings streams." ($1 = 0.8570 euros)
Yahoo
06-08-2025
- Business
- Yahoo
Ralliant Announces Quarterly Dividend
RALEIGH, N.C., August 06, 2025--(BUSINESS WIRE)--Ralliant Corporation ("Ralliant" or the "Company") (NYSE: RAL) announced today that its Board of Directors ("the Board") has approved a quarterly cash dividend of $0.05 per share of its common stock, payable on September 23, 2025 to stockholders of record as of the close of business on September 8, 2025. Tami Newcombe, President and Chief Executive Officer, stated, "We are making progress against our capital allocation priorities to focus on organic reinvestment, capital return to shareholders, and selective execution of tuck-in acquisitions aligned with our growth vectors. This announcement of our inaugural quarterly dividend, along with our prior announcement of the Board's authorization of up to $200 million of share repurchases demonstrate our commitment to return capital to shareholders." About Ralliant Ralliant is a global provider of precision technologies that specializes in designing, developing, manufacturing and servicing precision instruments and highly engineered products. Ralliant's two strategic reporting segments — Test & Measurement and Sensors & Safety Systems — include well-known brands with leading positions in their markets. The Company's businesses empower engineers with precision technologies essential for breakthrough innovation that brings advanced technologies to the market faster and more efficiently. With over 150 years of operating experience and enduring customer trust, we are known for delivering innovative, high-quality products with the precision that mission-critical systems demand. Ralliant is headquartered in Raleigh, North Carolina and employs a team of approximately 7,000 research and development, manufacturing, sales, distribution, service and administrative employees. The Company's global footprint enables a unique 'engineer to engineer' approach, which allows it to build enduring trust, credibility, and partnerships with customers across both Fortune 1000 companies and next generation start-up enterprises. With a culture rooted in continuous improvement, the core of our company's operating model is the Ralliant Business System. For more information please visit: Forward-Looking Statements Certain statements included in this press release are "forward-looking statements" within the meaning of the U.S. federal securities laws. All statements other than historical factual information are forward-looking statements, including, without limitation, statements regarding: business outlook and priorities; future financial performance and results, including outlook and guidance; revenue growth; cash flows, our liquidity position or other financial measures; management's plans and strategies for future operations and growth, including statements relating to anticipated operating performance, cost reductions, restructuring activities, new product and service developments, competitive strengths or market position, acquisitions, divestitures, strategic opportunities, shareholder value creation, capital allocation priorities, stock repurchases and dividends; the effects of the separation from Fortive on our business; growth, declines and other trends in markets we sell into, including the expected impact of trade and tariff policies; changes in government contracting requirements and reductions in federal spending; new or modified laws, regulations and accounting pronouncements; outstanding claims, legal proceedings, tax audits and assessments and other contingent liabilities; foreign currency exchange rates and fluctuations in those rates; tax rates, tax provisions, and the impact of changes to tax laws; general economic and capital markets conditions, including expected impact of inflation or interest rate changes; impact of geopolitical events and other hostilities; the timing of any of the foregoing; assumptions underlying any of the foregoing; and any other statements that address events or developments that we intend or believe will or may occur in the future. Terminology such as "believe", "expect", "anticipate", "forecast", "positioned", "intend", "plan", "project", "estimate", "grow", "will", "should", "could", "would", "may", "strategy", "opportunity", "possible", "potential", "outlook", "target", and "guidance" and similar references to future periods are intended to identify forward-looking statements, although not all forward-looking statements are accompanied by such words. Forward-looking statements are based on assumptions and assessments made by our management in light of their experience and perceptions of historical trends, current conditions, expected future developments and other factors they believe to be appropriate. These forward-looking statements are subject to a number of risks and uncertainties, including but not limited to the risks and uncertainties set forth under "Cautionary Statement Concerning Forward-Looking Statements", "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company's Information Statement filed as an exhibit to the Company's Form 10-12B/A with the U.S. Securities and Exchange Commission (the "SEC") on May 28, 2025, and in other documents that we have filed with, or furnished to, the SEC. Forward-looking statements are not guarantees of future performance and actual results may differ materially from the results, developments and business decisions contemplated by our forward-looking statements. Accordingly, you should not place undue reliance on any such forward-looking statements. Forward-looking statements speak only as of the date they are made (or such earlier date as may be specified in such statement). Except to the extent required by applicable law, Ralliant assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events, and developments or otherwise. View source version on Contacts INVESTOR CONTACT Nathan McCurrenVice President, Investor RelationsRalliant CorporationInvestors@ NEWS MEDIA CONTACT Alvenia ScarboroughVice President, CommunicationsRalliant CorporationCommunications@ 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
Associated Press
06-08-2025
- Business
- Associated Press
CDW Declares Quarterly Cash Dividend of $0.625 Per Share
VERNON HILLS, Ill.--(BUSINESS WIRE)--Aug 6, 2025-- CDW Corporation (Nasdaq: CDW), a leading multi-brand provider of information technology solutions to business, government, education and healthcare customers in the United States, the United Kingdom and Canada, today announced that its Board of Directors has declared a quarterly cash dividend of $0.625 per common share to be paid on September 10, 2025 to all stockholders of record as of the close of business on August 25, 2025. Future dividends will be subject to approval by CDW's Board of Directors. 'Dividends represent an important component of our capital allocation priorities, along with share repurchases, strategic M&A and managing our capital structure,' said Albert J. Miralles, chief financial officer, CDW. 'Since our IPO in June 2013, our dividend has increased nearly fifteen-fold, with eleven consecutive years of increases, and we have returned approximately $7.7 billion to stockholders through share repurchases and dividends. Our capital allocation strategy has enabled us to deliver value to our stockholders, just as we have delivered value to our customers and partners for 40 years.' About CDW CDW Corporation is a leading multi-brand provider of information technology solutions to business, government, education and healthcare customers in the United States, the United Kingdom and Canada. A Fortune 500 company and member of the S&P 500 Index, CDW helps its customers to navigate an increasingly complex IT market and maximize return on their technology investments. For more information about CDW, please visit Forward-Looking Statements Statements in this release that are not statements of historical fact are forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including without limitation statements regarding the future dividends, earnings growth, capital allocation and other strategic plans of CDW. These forward-looking statements are subject to risks and uncertainties that may cause actual results or events to differ materially from those described in such statements. Although CDW believes that its plans, intentions and other expectations reflected in or suggested by such forward-looking statements are reasonable, it can give no assurance that it will achieve those plans, intentions or expectations. Reference is made to a more complete discussion of forward-looking statements and applicable risks contained under the captions 'Forward-Looking Statements' and 'Risk Factors' in CDW's Annual Report on Form 10-K for the year ended December 31, 2024 and subsequent filings with the Securities and Exchange Commission. CDW undertakes no obligation to update or revise any of its forward-looking statements, whether as a result of new information, future events or otherwise, except as otherwise required by law. CDWPR-FI View source version on CONTACT: Investor Inquiries Steven O'Brien Senior Vice President, Investor Relations (847) 968-0238 [email protected] Inquiries Sara Granack Vice President, Corporate Communications (847) 419-7411 [email protected] KEYWORD: UNITED STATES NORTH AMERICA ILLINOIS INDUSTRY KEYWORD: NETWORKS HARDWARE DATA MANAGEMENT TECHNOLOGY SOFTWARE SOURCE: CDW Corporation Copyright Business Wire 2025. PUB: 08/06/2025 07:05 AM/DISC: 08/06/2025 07:04 AM
Globe and Mail
01-08-2025
- Business
- Globe and Mail
United Therapeutics Corporation Announces $1 Billion Accelerated Share Repurchase Program
United Therapeutics Corporation (Nasdaq: UTHR), a public benefit corporation, announced that it will enter today into two Accelerated Share Repurchase ( ASR) agreements with Citibank, N.A. ( Citi) to repurchase an aggregate $1 billion of UTHR common stock. United Therapeutics will repurchase these shares under the $1 billion repurchase program authorized by the company's board of directors and previously announced on July 30, 2025. 'These expeditious agreements reflect our confidence in the intrinsic value of our stock, our upcoming catalysts, and our ability to generate sustained revenue and cash flow growth,' said Martine Rothblatt, Ph.D., Chairperson and Chief Executive Officer of United Therapeutics. 'Our capital allocation philosophy provides us with the flexibility to both invest in our future growth while returning capital to our shareholders, and we remain committed to this balanced approach that will leave us with ample remaining capital on our balance sheet to fulfill our long-term goals.' Under the terms of the ASR agreements, which comprise a $500 million collared and a $500 million uncollared agreement, United Therapeutics will make an aggregate upfront payment of $1 billion to Citi on August 4, 2025. United Therapeutics will receive an initial delivery of shares representing approximately 75% of the total shares anticipated to be repurchased under the uncollared ASR agreement ( Uncollared ASR), plus approximately 50% of the total shares anticipated to be repurchased under the collared ASR agreement ( Collared ASR), in each case, measured based on the closing stock price of UTHR common stock on August 1, 2025. United Therapeutics also will receive an additional delivery of shares under the Collared ASR prior to final settlement following the completion of an agreed-upon hedging period. Uncollared ASR. The final number of shares that United Therapeutics will ultimately repurchase pursuant to the Uncollared ASR will be based on the average of the daily volume-weighted average price per share of UTHR common stock during the term of the Uncollared ASR, less a discount and subject to adjustments pursuant to the terms and conditions of the Uncollared ASR. Final settlement of the Uncollared ASR agreement is expected to be in the fourth quarter of 2025. Collared ASR. The final number of shares that United Therapeutics will ultimately repurchase pursuant to the Collared ASR will be determined based on the average of the daily volume-weighted average price per share of UTHR common stock during the term of the Collared ASR, less a discount and subject to a collar provision establishing the minimum and maximum numbers of shares to be repurchased, as well as other adjustments, pursuant to the terms and conditions of the Collared ASR. Final settlement of the Collared ASR agreement is expected to be in the first quarter of 2026. At final settlement of the ASR agreements, United Therapeutics may be entitled to receive additional shares of its common stock, or, in certain limited circumstances, be required to make cash payment to Citi or, if United Therapeutics elects, deliver shares to Citi. At July 30, 2025, United Therapeutics had approximately 45.2 million shares outstanding. This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall it constitute an offer, solicitation, or sale in any jurisdiction in which such offer, solicitation, or sale is unlawful. United Therapeutics: Enabling Inspiration At United Therapeutics, our vision and mission are one. We use our enthusiasm, creativity, and persistence to innovate for the unmet medical needs of our patients and to benefit our other stakeholders. We are bold and unconventional. We have fun; we do good. We are the first publicly-traded biotech or pharmaceutical company to take the form of a public benefit corporation ( PBC). Our public benefit purpose is to provide a brighter future for patients through (a) the development of novel pharmaceutical therapies; and (b) technologies that expand the availability of transplantable organs. You can learn more about what it means to be a PBC here: Forward-Looking Statements Statements included in this press release that are not historical in nature are 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, among others, statements related to our confidence in our near-term prospects, the intrinsic value of our stock, and our upcoming catalysts; the growth of our business, including our ability to generate sustained revenue and cash flow growth; the benefits of the share repurchase to shareholders; our plan to enter into the ASR agreements; the number of shares to be repurchased under the ASR agreements; the timing and manner of the final settlement under the ASR agreements; our views regarding whether our remaining capital will be sufficient to fulfill our long-term goals and to invest in future growth; and our goals of innovating for the unmet medical needs of our patients and to benefit our other stakeholders, furthering our public benefit purpose of developing novel pharmaceutical therapies and technologies that expand the availability of transplantable organs. These forward-looking statements are subject to certain risks and uncertainties, such as those described in our periodic reports filed with the Securities and Exchange Commission, that could cause actual results to differ materially from anticipated results. Consequently, such forward-looking statements are qualified by the cautionary statements, cautionary language and risk factors set forth in our periodic reports and documents filed with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. We claim the protection of the safe harbor contained in the Private Securities Litigation Reform Act of 1995 for forward-looking statements. We are providing this information as of August 1, 2025, and assume no obligation to update or revise the information contained in this press release whether as a result of new information, future events, or any other reason.
