Deals
Buffett Era of 8.5% Dividends Ends as Dow Swaps Stake
- Dow Chemical to also convert Kuwait Authority’s holding
- Conversion date is set for Dec. 30 on preferred shares
Warren Buffett
Photographer: Scott Eells/BloombergThis article is for subscribers only.
Warren Buffett’s era of collecting $255 million a year on his Dow Chemical Co. investment is coming to an end.
Dow will convert his $3 billion preferred stake to common stock after the shares finally sustained a rally long enough to allow the company to force the swap under terms of a 2008 deal. Buffett’s Berkshire Hathaway Inc. will get 72.6 million shares of common stock, valued at about $4.2 billion based on Thursday’s closing share price. Dow also will convert a $1 billion preferred stake that was held by the Kuwait Investment Authority. The conversion date was set for Dec. 30, Dow said in a statement Thursday.