Berkshire buying Taylor Morrison at a 24% premium — grab the deal spread before it closes
Berkshire Hathaway — Warren Buffett's company — just announced it's buying homebuilder Taylor Morrison for $72.50 per share in cash. That's a 24% premium above where the stock closed on Friday, and it's the first big deal under Berkshire's new CEO Greg Abel.
Idea
Berkshire Hathaway is paying $72.50 per share in cash for Taylor Morrison — a 24% premium to Friday's close. When a deal like this lands, the stock usually opens higher but often doesn't immediately jump all the way to the offer price because there's always a small chance the deal falls through. That gap between where the stock opens and the $72.50 offer is essentially free money if the deal closes — and Berkshire paying all cash with no financing contingency makes this about as safe a bet as you get. It's the first major deal under new CEO Greg Abel, so he has every incentive to get it done cleanly. Look to buy on any morning dip and sit tight as the spread tightens toward the offer price.