Business Case Studies & Business Publications

Warren E. Buffett, 2005

Bruner, Robert F.,...

Case

Warren E. Buffett, 2005

Bruner, Robert F.; Carr, Sean

F-1483 | Published November 17, 2005 | 20 pages Case

Collection: Darden School of Business

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In May 2005, Warren Buffett, the chair and chief executive officer of Berkshire Hathaway Inc., announced that MidAmerican Energy Holdings Company, a subsidiary of Berkshire Hathaway, would acquire the electric utility PacifiCorp. MidAmerican would purchase PacifiCorp from its parent, Scottish Power and renewed public interest in its sponsor, Warren Buffett. By understanding Buffett's principles, analysts hoped to illuminate the acquisition of PacifiCorp. What did Buffett's offer say about his valuation of PacifiCorp, and how would it compare with valuations for other regulated utilities? Would Berkshire's acquisition of PacifiCorp prove to be a success?