Occidental Petroleum Corp. redeemed $647 million, or about 6.5%, of Berkshire Hathaway Inc.’s preferred stock as the oil company begins paying back Warren Buffett four years after he helped finance its acquisition of Anadarko Petroleum Corp.
The total cost of Occidental’s redemption was $712 million as it includes a 10% premium to Buffett and matches distributions to common stock holders, the Houston-based company said in a presentation Tuesday. Buffett’s preferred stock carries an 8% annual dividend, making it an expensive part of Occidental’s capital structure.
