‘Buffet to help finance Burger King deal’

A Burger King logo is pictured in the Brooklyn borough of New York August 25, 2014. Shares of Canadian coffee and doughnut chain Tim Hortons Inc and US fast-food company Burger King jumped on Monday after news that they are in merger talks. The companies, which are comparable in size by market value, confirmed they were discussing a takeover of Tim Hortons by Burger King.

A Burger King logo is pictured in the Brooklyn borough of New York August 25, 2014. Shares of Canadian coffee and doughnut chain Tim Hortons Inc and US fast-food company Burger King jumped on Monday after news that they are in merger talks. The companies, which are comparable in size by market value, confirmed they were discussing a takeover of Tim Hortons by Burger King.

Published Aug 26, 2014

Share

Washington - Warren Buffett will help finance Burger King's planned takeover of the Canadian coffee and donut chain Tim Hortons, the Wall Street Journal reported Tuesday.

The precise structure of Buffett's participation is not yet clear and discussions are ongoing, the paper said, quoting people familiar with the transaction.

Some of the people said it would be in the form of preferred shares, and one said Buffett's company Berkshire Hathaway would provide about 25 percent of the deal's financing.

The companies announced the plan on Sunday and the Journal said a final deal valued at around 10 billion dollars or more could be announced in a day or two.

The two companies' current market value is about $18 billion (R193 billion).

They said Sunday the new group would be traded and based in Canada, where the merged company's largest market is located.

A Canada home base will also permit the company to benefit from Ottawa's more favourable tax code.

Buffett could conceivably take flack for that because he has been outspoken in his position that the ultra-rich in the United States should pay more in taxes. - Sapa-AFP

Related Topics: