Berkshire Offered Its 30.8% Stake in USG to Knauf at $42 per Share

Berkshire Hathaway offered to sell its many year 30.8% stake in USG to privately held Knauf for $42 per share, representing a 25% premium over its closing price of $33.51 on March 23.

At Berkshire Hathaway’s 2017 annual meeting, Warren Buffett said:  “Berkshire has held equity in USG through two bankruptcies: asbestos and too much debt, because it was very cheap. Gypsum is a disappointing business.  Each time the business rebounds, management get too optimistic and they increase supply so that it exceeds demand. This was not a great idea.”