Seeking Alpha

Bloomberg: Buffett power hunt may target Wisconsin Energy, Alliant Energy

Utilities that meet takeover criteria outlined by Warren Buffett this weekend for another “major” acquisition after paying more than $5B last year for electricity provider NV Energy include Wisconsin Energy (WEC +1.8%) and Alliant Energy (LNT +1.1%), Bloomberg speculates.

WEC and LNT operate in states with favorable regulatory environments, and LNT is expanding into renewable energy, which Buffett has signaled could be a focus for large investments, according to Morningstar; pipeline MLPs such as Plains All American (PAA) and MarkWest Energy (MWE) also could appeal to Buffett, a Baird analyst says.

Berkshire Hathaway (BRK.A, BRK.B) “is likely looking at a lot of small, regulated utilities that have a lot of growth on the table where his low cost of capital is an incredible advantage,” Morningstar's Mark Barnett says.

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Comments (13)
  • sbecker75
    , contributor
    Comments (4) | Send Message
    I hope the Berkshire-Hathaway stays away from LNT. When they consume a company it is like a black hole and the dividend is never seen again! LNT is a good dividend hold and it would be a shame to see Buffett consume it and it's dividend. Berkshire Hathaway is a pox on the buy and hold dividend investing strategy.
    4 Mar 2014, 10:51 AM Reply Like
  • Philip Marlowe
    , contributor
    Comments (1369) | Send Message
    Why? With a single exception (BNSF being part stock), they always give you cash. You get your money including a substantial premium over market price and then you can go look for other dividend stocks.
    4 Mar 2014, 01:06 PM Reply Like
  • Michael Bryant
    , contributor
    Comments (5941) | Send Message
    (WEC) seems a good fit. Loved the article did on (WEC) a year ago on Seeking Alpha. Don't remember the title, but it showed that (WEC) did very well over the last 30 years.
    4 Mar 2014, 10:51 AM Reply Like
  • 1627
    , contributor
    Comments (144) | Send Message
    buffet :stay away.
    go somewhere else.
    historically,I have spent time,time,time on research.I then buy as a result of my research.
    And later,you come in and buy.
    now ,the rumor is on these stocks for purchase.


    go away
    4 Mar 2014, 10:57 AM Reply Like
  • DAVE22Q
    , contributor
    Comments (399) | Send Message
    Boo hoo. I studied and invested in a stock and now that mean man is going to pay me a premium and force me to hunt for another investment. Boo hoo.
    4 Mar 2014, 11:07 AM Reply Like
  • sbecker75
    , contributor
    Comments (4) | Send Message
    No one wishes to be percieved as cry baby here but being forced to sell a fine equity position merits negative comentary when a predatory entity is the driving force. Not everyone wishes to be buying an selling stock positions. The buy and hold dividend investor looks for sound fundamentals and dividend stability in their investment choices. A company like Berkshire ruins many of those choices. BNSF, Heinz and others were good buy and hold dividend plays that are lost to that type of investor. I for one would celebrate the forced breakup of Berkshire Hathaway.
    4 Mar 2014, 11:36 AM Reply Like
  • Michael Bryant
    , contributor
    Comments (5941) | Send Message


    Love the sarcasm.
    4 Mar 2014, 11:50 AM Reply Like
  • financeminister
    , contributor
    Comments (1078) | Send Message
    I hold WEC and this is my second take over target rumor stock I hold (I held KOG at one time)...can someone give me an idea about what would happen to the stock price if Buffett agrees to buy and what's the best course of action for an investor like me...I bought WEC as part of allocating utilities in my DGI portfolio.
    4 Mar 2014, 11:25 AM Reply Like
  • Craig Joyce
    , contributor
    Comments (49) | Send Message
    It's hard to believe you are really that upset by Buffett when you can't even spell his name correctly. 
    4 Mar 2014, 11:49 AM Reply Like
  • Brucejfern
    , contributor
    Comments (1527) | Send Message
    I doubt Buffett would touch PAA because of the high cost to take out their GP. MWE has no GP or IDRs thus would be easier to take out. With his no dividend policy and long perspective he would have to offer more than $80 to get MWE taking into account the huge organic growth footprint/build out currently under way. Chevron had to pay up big to get APL's JV with Williams Partners.


    Buffett just completed NVE purchase here in Nevada. He is very focused on the big solar build outs that will allow for more energy to be sold to neighboring California, a state too good to do its own energy build out leaving its customers with inconsistent levels of energy.
    4 Mar 2014, 11:55 AM Reply Like
  • Sean Erickson
    , contributor
    Comments (292) | Send Message
    Why are we talking mlps? Wouldnt they be too expensive for a corporation to hold?
    4 Mar 2014, 12:44 PM Reply Like
  • Investing Doc
    , contributor
    Comments (929) | Send Message
    Mr. Buffett can come purchase my entire portfolio at a premium anytime he likes.
    5 Mar 2014, 12:56 AM Reply Like
  • jumpnjoey77
    , contributor
    Comments (998) | Send Message
    LNT would be the 5th stock I hold he has bought out in 2 years. Wish he would buy out EGAS.
    5 Mar 2014, 03:32 AM Reply Like
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