(BRK.A), (BRK.B)
Berkshire Hathaway now has another wholly-owned company, as it has completed its purchase of the remaining 20 percent share of the Pilot Corporation that the Haslems owned.
Recently, the two sides had settled their dispute over the valuation of the remaining 20 percent share of the Pilot Corporation that the Haslems owned.
The Haslem family had sued Berkshire contending that its change to pushdown accounting had hurt their valuation in regards to Berkshire’s buyout of the remaining 20 percent stake that the Haslems still owned of the travel center company. Berkshire counter sued contending that the Haslems had illegally engaged in a bribery scheme where top executives received payments in exchange for inflating earnings in a manner that would benefit Haslems on the price Berkshire would ultimately pay to the Haslems.
The matter was due to be fought out in two-day trial in early January in Delaware court, but a settlement ended all litigation.
On Tuesday, Berkshire Hathaway announced that “Pursuant to the terms of a settlement agreement reached with Pilot Corporation, Berkshire Hathaway Inc. has acquired Pilot Corporation’s remaining 20% interest in Pilot Travel Centers LLC effective today. Berkshire Hathaway now owns 100% of Pilot Travel Centers.”
© 2024 David Mazor
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell a stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.