Boston, MA 08/26/2014 (wallstreetpr) – In a planned acquisition of Tim Hortons Inc. (USA) (NYSE:THI) by Burger King Worldwide Inc (NYSE:BKW), a renowned investor, Warren Buffett will enter into the picture. Warren Buffet shall be forwarding his support to Burger King in taking over Canada’s coffee-and-doughnut chain.
A Surprise Twist in the Tale
The surprise twist in this acquisition tale has made the deal even more interesting; especially considering the U.S. tax inversion angle. Indeed, Mr. Buffet’s investment scheme into this deal will drag him into the tax debate as well.
As per The Wall Street Journal, Berkshire Hathaway Inc. (NYSE:BRK.B) shall be investing in this deal by way of preferred shares. Also, Berkshire shall be facilitating approximately 25% of the financing of this deal. Though the exact structure of Berkshire’s role in this deal is still unclear, but it has been reported that the discussions are on their way. The acquisition shall be confirmed within this week, as per the people close to this deal and the transaction might be valued somewhere close to $10 billion.
Stocks Soaring High
As Burger King Worldwide Inc (NYSE:BKW) and Tim Hortons Inc. (USA) (NYSE:THI) announced about this deal, the shareholders accepted it in positive outlook, sending the shares of both these companies high. No matter what the reason was; operational promise, financial benefit or tax saving, the shareholders cheered up for this deal after the announcement.
Furthermore, Buffet’s participation angle to the deal might allow the shares to enjoy a higher swing, given the reputation of this sponsor as the shrewd investing. ighHighh
Both, Burger King Worldwide Inc (NYSE:BKW) and Tim Hortons, are looking forward to a merger that would lead to creation of international quick-service giants comprising of over 18,000 restaurants in 100 countries and the system-wide sales worth $22 billion. The combination of these two fast food chain giants will also allow Tim Hortons to spread its tentacles further, even though, at present it is operational in just a few countries.
