Occidental Petroleum

[mistaTea]

I see Warren continues to go balls deep in this one.

Just bought another 10.5M on the back of the agreement for OXY to buy crown rock.

[iceman]

I see Warren continues to go balls deep in this one.

Just bought another 10.5M on the back of the agreement for OXY to buy crown rock.

Saw rumours somewhere that Berkshire may be funding the purchase of Crown Rock

[mistaTea]

Saw rumours somewhere that Berkshire may be funding the purchase of Crown Rock

Yeah I saw that too…fuelled by someone spotting the OXY jet in Omaha recently.

But the CR deal will mostly be funded by debt from the banks not Berkshire.

So it begs the question - what were they talking about?

Hollub was very vague when asked about it. Just said they talked about a few things, not all business etc.

And a few months back WB did say he was not intended to do a full takeover of OXY.

Then again, time passes and how cash pile has grown to almost $160B so he will want to deploy it.

Perhaps he is just happy to continue buying on market while the SP is depressed for now.

Just very mysterious that Hollub was there visiting us all. Let’s see.

[iceman]

Yeah I saw that too…fuelled by someone spotting the OXY jet in Omaha recently.

But the CR deal will mostly be funded by debt from the banks not Berkshire.

So it begs the question - what were they talking about?

Hollub was very vague when asked about it. Just said they talked about a few things, not all business etc.

And a few months back WB did say he was not intended to do a full takeover of OXY.

Then again, time passes and how cash pile has grown to almost $160B so he will want to deploy it.

Perhaps he is just happy to continue buying on market while the SP is depressed for now.

Just very mysterious that Hollub was there visiting us all. Let’s see.

Sounds like we read the same article.
I believe Berkshire can currently buy up to 50% of OXY, without any further agreement from the NYSE. So he could employ some of his cash pile there without any problems.

[mistaTea]

Sounds like we read the same article.
I believe Berkshire can currently buy up to 50% of OXY, without any further agreement from the NYSE. So he could employ some of his cash pile there without any problems.

Yes that’s right he can go to 50% no worries.

I think he is snapping up any shares below $60. He may have even gone up to $62 from memory (no idea what his limit will be).

He also has long life warrants for another 89M shares at around $59.

So he is sitting pretty. Grab as many shares as he can at depressed prices up to 50% and then go from there.

Either an eventual takeover, or maybe he really does prefer to keep OXY as a listed company. He currently holds 27% of the shares so effectively controls the company.

Probably why Hollub flew into Omaha - to kiss the ring before finalising the CR deal.

And I do mean jewellery - not his other ring!

[mistaTea]

Yep, still buying as much as he can grab.

https://www.xm.com/research/markets/allNews/reuters/berkshire-hathaway-boosts-stake-in-occidental-petroleum-to-about-28-53725493

[mistaTea]

Price hovering around $57 this week but no top up announcement from BRK yet.

Surprising.