Berkshire scoops up Taylor Morrison at a 24% premium — grab the deal spread before it closes
Warren Buffett's Berkshire Hathaway just announced it's buying home builder Taylor Morrison for $72.50 per share in cash — a 24% premium above Friday's closing price. It's the first big deal under Berkshire's new CEO Greg Abel.
Idea
When a blue-chip buyer like Berkshire offers a fat all-cash premium, the target stock usually jumps but still trades below the deal price because investors worry the deal could fall through. With Berkshire's fortress balance sheet behind it, the risk of the deal collapsing is low — meaning that gap between today's price and $72.50 is essentially free money if the deal closes. The stock should grind higher toward the offer price as regulators sign off and the closing date approaches. This is a classic 'get paid to wait' setup.