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Barron's points out that Occidental's ability to repay the loan is limited by a formula in the deal "in which half of any money available for dividends and buybacks beyond $4 a share a year goes to paying off the preferred stock," with the other half going to common shareholders.
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OXY shares started Monday with a drop of around 2% in reaction to Buffett's proclamation at the meeting that Berkshire would not make an offer to acquire all of the oil giant, squelching speculation that its ongoing purchases of common shares could lead to a bid. |
But it went even lower later in the week after reporting a disappointing 48% drop in Q1 earnings amid a slide for oil companies as recession worries hit the price of crude.
One positive for Buffett, who likes when companies in Berkshire's portfolio buy back their shares, is CEO Vick Hollub telling analysts that it will prioritize returning excess cash to shareholders over additional investments in technology to remove carbon dioxide from the air.
(Bloomberg's Matt Levine had a very interesting take this week on how oil company buybacks could lead to more funding for green energy.) |
Right-wing shareholder activist arrested at Berkshire meeting |
An activist shareholder was arrested during the formal business portion of Berkshire's annual meeting and charged with trespassing after he refused a request to leave.
According to several reports, Peter Flaherty, the head of the conservative National Legal and Policy Center, had been speaking in favor of his shareholder proposal to separate Berkshire's chairman and CEO roles so that the company would be "less identified with Mr. Buffett's political activities," including donations to the Gates Foundation, when he insinuated that Bill Gates was associated with Jeffrey Epstein's sex trafficking of young women.
That prompted heavy booing from the audience and Buffett had Flaherty's microphone cut off, saying he had "crossed a boundary" with a personal attack.
According to an NLPC account, he was then escorted off the floor of the meeting by an Omaha police officer.
Flaherty told the conservative Daily Signal web site he wants the charges dropped and an apology from Berkshire, saying, "I didn't raise my voice. I was not disruptive."
The proposal was rejected by shareholders, getting just under 11% of the vote. |
Buffett and Munger 'Squishmallows' are big hit |
When Berkshire bought insurer Allegheny last year, it may not have been focusing on the "Squishmallows" that came along with it.
They are made by Allegheny subsidiary Jazwares, and are avidly collected by both adults and children. |
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Photos: CNBC | Yun Li | David A. Grogan |
They made their Berkshire annual meeting debut this weekend and were an enormous hit, with around 10,000 special Buffett and Munger versions sold for $10 on the floor of the exhibition hall that features many Berkshire products.
Recent sales on eBay have them going for up to $250 a pair. |
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