Reuters: Baker Hughes, Williams could be prime Buffett takeover candidates


Noting that Berkshire Hathaway's (BRK.A, BRK.B) Warren Buffett has suggested he will hunt for his next big acquisition among energy companies, Reuters speculates that strong candidates that fit Buffett's style could include Baker Hughes (BHI), Williams Partners (WPZ) and Pinnacle West Capital (PNW).

BHI has a fat ~$30B market cap but is trading at a discount to peers on several key metrics, WPZ sports the competitive advantage of its ownership of the Transco gas mainline which runs from Texas to New York, while PNW may be on the smallish side but offers strong cash flow from operations and reasonable debt.

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Comments (11)
  • rlp2451
    , contributor
    Comments (9718) | Send Message
     
    Williams Partners? Don't you mean Williams Companies? He'd have to buy the GP along with the LP.
    27 May 2014, 11:37 AM Reply Like
  • MisterJ
    , contributor
    Comments (1179) | Send Message
     
    Leave WMB alone I am very happy with it over the years.
    27 May 2014, 03:24 PM Reply Like
  • texirish
    , contributor
    Comments (122) | Send Message
     
    "The Oracle of Omaha has suggested he will hunt for his next "elephant" - his favorite word for big acquisitions -- among energy companies."

     

    Could Reuters please provide a link that supports this statement?

     

    I don't recall such a suggestion. Any help appreciated.
    27 May 2014, 11:37 AM Reply Like
  • Kingkang
    , contributor
    Comments (186) | Send Message
     
    yeah he never said this if i can rememeber. reuters is misleading.
    27 May 2014, 12:12 PM Reply Like
  • soccerref
    , contributor
    Comments (25) | Send Message
     
    Looks like Reuters is trying to "suggest" elephants. WB will let us know what he's buying after he buys it.
    27 May 2014, 02:27 PM Reply Like
  • chummybeagle
    , contributor
    Comments (120) | Send Message
     
    Who wants to make a bet that none of these will be acquired by Berkshire?
    27 May 2014, 11:56 AM Reply Like
  • rlp2451
    , contributor
    Comments (9718) | Send Message
     
    I could see him buying Pinnacle West. Would be a complement to MidAmerican Energy Holdings he bought last year. The other two, not so much.
    27 May 2014, 12:13 PM Reply Like
  • hat_trick3
    , contributor
    Comments (1511) | Send Message
     
    I think the author is looking in the wrong parts of the stock market. He has a penchant for strong brands OR insurance. That said, I think Clorox or Campbell Soup is a possibility or Chubb or AFLAC or Markel
    Personally, my bet is on Mars or Johnson Companies (both private)
    27 May 2014, 03:36 PM Reply Like
  • Invest Rookie
    , contributor
    Comments (68) | Send Message
     
    The Mars heirs would accept or consider Buffett as a safe home for their empire only if Buffett keep his buddy & hardcore cost cutter Jorge Paulo Lemann at bay...

     

    Second problem is valuation, at US$75 Billions(Bloomberg) even for Berkshire Hathaway this would be far too much @t a 20% premium
    27 May 2014, 06:15 PM Reply Like
  • Michael Bryant
    , contributor
    Comments (7084) | Send Message
     
    He should buy a big stake in (BP).
    27 May 2014, 07:50 PM Reply Like
  • bberuch
    , contributor
    Comments (314) | Send Message
     
    Mr Buffet will not tip his hand in advance so as not to let others bid up the price of his next objective.

     

    Scoccerref seems to understand this.
    28 May 2014, 08:05 AM Reply Like
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