To: Sean Collett who wrote (78168 ) 9/30/2025 8:49:00 PM From: E_K_S Read Replies (1) | Respond to I wonder if BRK's OXY Preferred is/will be part of the payment; a swap of assets$10 billion in Occidental Petroleum's (OXY) 8% Cumulative Perpetual Preferred Stock in 2019 to help finance OXY's acquisition of Anadarko.Initial Liquidation Value: $10 billion (100,000 shares with a $100,000 liquidation value per share).Dividend: The preferred stock pays an 8% annual dividend, or $800 million per year.Current Value: Occidental has made mandatory redemptions, primarily based on the amount of cash returned to common shareholders above a certain threshold.As of March 31, 2024 , the aggregate liquidation value of BRK's preferred stock investment was approximately $8.5 billion , reflecting mandatory redemptions of about $1.5 billion during 2023. This value changes as more redemptions occur. OxyChem :The speculation is that Berkshire Hathaway may be in talks to acquire Occidental Petroleum's petrochemical division, OxyChem, for an estimated $10 billion. Media reports indicate this would be a separate, outright acquisition by Berkshire. There is no confirmed information that the existing OXY preferred stock would be directly used as currency for the OxyChem purchase. The preferred stock is a debt-like instrument that OXY is paying off, and an acquisition would typically be a new transaction. However, if such a deal were to close, the $10 billion cash proceeds from the sale of OxyChem would significantly help Occidental accelerate its debt reduction efforts, which would likely include redeeming the remainder of Berkshire Hathaway's preferred stock as it is a high-cost financing source for OXY.
