Well, one of the richest men in the world is reportedly backing the proposed “strategic transaction” between Burger King and Tim Hortons. Game over.
The Wall Street Journal is back for another round of blows and stating that Warren Buffett is assisting his knowledge and wealth to back the takeover of Timmies by Burger King — that just sounds all sorts of wrong.
However, “people familiar with the matter” say that this news will help push the deal through and Berkshire Hathaway, Buffet’s company, would make an investment upwards of 25% of the deal’s financing, and the entire value of the transaction is estimate to be above the $10 billion mark. In a press release, Tim Hortons confirmed the news of the two companies in “talk,” but an agreement “could be announced in the next day or two.”
Tim Hortons stock skyrocketed 19.26% today and closed at $82.03, while Burger King echoed these numbers and also rose 19.51% to $32.40.