Billionaire investor Warren Buffet will be helping to finance Burger King Worldwide Inc.'s planned merger with Tim Hortons Inc., the Wall Street Journal reports.
The Journal quoted sources familiar with the matter, reporting that Buffet's agreement with Burger King would likely take the form of preferred shares and be valued at around U.S. $10-billion, accounting for possibly up to 25 per cent of the deal.
Tim Hortons ad starring Sidney Crosby, with whom the company has an endorsement deal. Tim Hortons
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Coffee cups sit at a Tim Hortons in Oakville, Ont., in September, 2013. The coffee chain upped its revenue in the second quarter of 2014, though profits stayed flat. The Canadian Press
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An official announcement is expected to come out within the next few days.
Buffet's involvement will also be the second time that the chairman and chief executive of Berkshire Hathaway Inc will work with 3G Capital Management, Burger King's controlling shareholder. The two previously teamed up in the takeover of H.J. Heinz & Co. in 2013.
It was announced late Sunday night that Miami-based Burger King and Canadian coffee-chain staple Tim Hortons were in talks to strike an agreement that would see the creation of a new holding company headquartered north of the border. The companies said that both brands would continue to operate independently.
Already, the planned deal has drawn criticism from those who see the merger as a way for Burger King to escape the United State's higher corporate tax rate.
If successful, the merger will make make Tim Hortons and Burger King the third largest fast-food chain the world.
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Posted by Unknown on Monday, August 25, 2014 - Rating: 4.5
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