Berkshire Hathaway shares hit $300,000
Berkshire Hathaway Inc.'s Class A shares touched $300,000 for the first time Monday, another milestone for the conglomerate that Warren Buffett's been building for more than half a century.
The shares, which have never split, traded at $300,000 at 9:54 a.m. They're up about 23 percent this year, slightly outperforming the S&P 500 Index, as investors bet that Buffett will be able to continue expanding his business with stock picks and acquisitions. The company may also be a major beneficiary of the Republican tax-cut plan making its way through Congress.
About three years ago the Berkshire shares crossed the $200,000 mark. It took almost eight years for that to climb from $100,000.
Buffett, 87, started accumulating the stock at $7.50 a share in December 1962.
-- Bloomberg News
Campbell Soup buying Snyder's-Lance
NEW YORK -- Campbell Soup will spend $4.87 billion in cash for Snyder's-Lance, gorging on a snack market that has grown increasingly competitive.
The soup maker said Monday that the acquisition will allow it to expand its distribution channels in the crowded field.
Campbell Soup Co., based in Camden, N.J., is paying $50 per share, a 6.8 percent premium to Snyder's-Lance's closing price Friday. That's about a 27 percent premium to the stock's close last Wednesday, just before rumors of a deal began to circulate.
Snyder's-Lance, based in Charlotte, N.C., makes pretzels and chips. Its most well-known brands include Snyder's of Hanover, Kettle Brand and Pop Secret. It will join the Campbell's division that makes Pepperidge Farm and Goldfish crackers.
The Snyder's-Lance purchase marks Campbell's sixth and largest acquisition over the past five years. It bought beverage-maker Bolthouse Farms in 2012, baby food company Plum and biscuit company Kelsen in 2013, hummus and salsa maker Garden Fresh in 2015, and soup maker Pacific Foods in 2017.
In midday trading, Campbell Soup shares rose 7 cents to close Monday at $49.66. Snyder's-Lance gained $3.25, or 7 percent, to $50.04.
-- The Associated Press
Oil delivery delays raise crude prices
Crude prices edged higher for a third session Monday as the shutdown of one of the world's most important oil pipelines stretched into a second week.
Futures pushed toward $58 a barrel in New York. The owner of the Forties Pipelines System, a North Sea conduit that plays a central role in setting global crude prices, said Monday that it was still determining the best repair options for a crack that forced a halt to oil deliveries on Dec. 11.
Meanwhile, hedge-fund managers have amassed a record number of bullish wagers on London crude prices, creating conditions that could trigger a sell-off when the pipe resumes shipments, said Bob Yawger of Mizuho Securities USA.
"The only thing that's holding the market here at these levels is the Forties problem," said Yawger, Mizuho's New York-based director of futures. "The potential is there for people to start bailing on the loaded-up speculative position. I would tend to think there will be a slow unwinding of these positions in anticipation" of the line restarting soon.
Oil is poised for about a 7 percent gain this year after production limits by the Organization of Petroleum Exporting Countries and other major suppliers eroded a worldwide glut. The effort to curb excess output could be dashed by U.S. shale drillers, who are forecast to lift American oil production to a record next year.
-- Bloomberg News
Homebuilders most optimistic since '99
WASHINGTON -- U.S. homebuilders are feeling more optimistic than they have in nearly two decades.
The National Association of Home Builders/Wells Fargo builder sentiment index released Monday rose five points to 74 this month. That's the highest reading since July of 1999, more than 18 years ago.
Readings above 50 indicate more builders see sales conditions as good rather than poor. The index has remained above 60 since September of 2016.
The index exceeded the expectations of analysts surveyed by FactSet, who expected a reading of 70.
All three components of the index rose in December. The reading gauging builders' view of single-family home sales rose four points to 81, while the outlook for sales over the next six months ticked up three points to 79. The measure of traffic by prospective buyers jumped eight points to 58.
The Commerce Department reported late last month that Americans bought new homes in October at the fastest pace in a decade -- a 6.2 percent monthly increase -- reflecting a strong economy but also a worsening shortage of existing homes for sale.
-- The Associated Press
Penn National's Pinnacle deal $2.8B
NEW YORK -- Pinnacle Entertainment is being snapped up by Penn National in a deal worth about $2.8 billion as the gambling industry seeks to diversify and cut costs at the same time.
Penn National Gaming Inc. is spending $20 in cash for each share, and Pinnacle shareholders will get 0.42 shares of Penn for each Pinnacle share they own. The stock-and-cash bid is worth an implied $32.47 per share, the companies said.
As part of the deal, Boyd Gaming Corp. is buying four of Penn National's newly acquired properties. Those include the Ameristar St. Charles and the Ameristar Kansas City, both in Missouri, as well as the Belterra Casino Resort in Florence, Ind., and Belterra Park in Cincinnati. Boyd will pay $575 million for those assets.
Penn says the combined company will have 41 properties in North America, not including those acquired by Boyd. The company also expects about $100 million in annual cost savings as a result of the deal.
"The combined company will benefit from enhanced scale, additional growth opportunities and best-in-class operations, creating a more efficient integrated gaming company," said Penn Chief Executive Officer Timothy J. Wilmott.
In morning trading, Pinnacle Entertainment shares rose 24 cents to close at $31.19. Penn National shares dipped 66 cents to $29.03, and Boyd Gaming shares rose $2.44, or 7.6 percent, to $34.77.
-- The Associated Press
Business on 12/19/2017