Procter & Gamble Co., one of Warren Buffett's top portfolio holdings, is about to lose the billionaire's influential backing at a time when it appears the company's own fortunes have peaked. Thursday's agreement by Buffett's Berkshire Hathaway Inc. to turn over the $4.7 billion in shares it owns in the world's largest consumer products company in exchange for P&G's Duracell battery business comes one day after P&G shares hit a life-time high."He is basically cashing in at a 52-week high," said Doug Kass, who runs hedge fund Seabreeze Partners Management in Palm Beach, Florida. "He is stating in transaction that Duracell is inexpensive and P&G stock is expensive. And accomplishing this all in tax-efficient transaction."Buffett's transaction provides an exit from an investment he began making a quarter century ago, and on which he had already been dialing back.Under the deal, P&G will infuse about $1.8 billion of cash into Duracell before the expected closing in the second half of 2015.
Berkshire Hathaway Inc. (Berkshire) is a holding company owning subsidiaries engaged in a number of diverse business activities. Shares of BRK-A traded higher by 0.55% or $1199.0/share to $219300.00. In the past year, the shares have traded as low as $163038.00 and as high as $218544.00. On average, 360 shares of BRK-A exchange hands on a given day and today's volume is recorded at 435.
Berkshire Hathaway Inc. (Berkshire) is a holding company owning subsidiaries engaged in a number of diverse business activities. Shares of BRK-B traded higher by 0.53% or $0.77/share to $146.29. In the past year, the shares have traded as low as $108.12 and as high as $145.75. On average, 3565860 shares of BRK-B exchange hands on a given day and today's volume is recorded at 3056317.
The Procter & Gamble Company (P&G) is focused on providing consumer packaged goods. Shares of PG fell by 0.98% or $-0.88/share to $88.60. In the past year, the shares have traded as low as $75.26 and as high as $89.88. On average, 7787590 shares of PG exchange hands on a given day and today's volume is recorded at 10181591.
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