Buffett to Oppose USG Board After $5.9 Billion Knauf Bid Spurned

• April 12 2018
• Katherine Chiglinsky, Thomas Black

Berkshire Hathaway Inc. is planning to oppose USG Corp.’s board nominees in an upcoming shareholder vote, backing a shareholder revolt after the wallboard maker spurned a takeover bid from Germany’s Knauf. USG shares jumped.

Berkshire Hathaway Inc. is planning to oppose USG Corp.’s board nominees in an upcoming shareholder vote, backing a shareholder revolt after the wallboard maker spurned a takeover bid from Germany’s Knauf. USG shares jumped.

Knauf, which owns about 10 percent of USG, is calling for shareholders to vote against board nominees next month as a way to pressure the company into accepting the $5.9 billion deal.

“Berkshire’s present intention is to vote against the four directors proposed by management,” Debbie Bosanek, an assistant to Berkshire Chief Executive Officer Warren Buffett, said in an email Thursday. Berkshire holds 31 percent of Chicago-based USG.

Berkshire’s support of Knauf adds to the pressure on USG’s board to reconsider its opposition to the potential transaction. Knauf offered to buy USG for $42 a share, Berkshire revealed in a regulatory filing last month.

USG climbed 3.1 percent to $41.04 at 10:43 a.m.