NU Online News Service, May 24, 3:35 p.m. EDT–Scottish Power PLC agreed to sell PacifiCorp, the leading electricity provider in the Northwest, to MidAmerican Energy, a subsidiary of Warren Buffet's Berkshire Hathaway Inc.
The terms of the deal include $5.1 billion in cash and an estimated $4.3 billion in debt. Analysts at Dresdner Kleinwort Wasserstein said they believe that "PacifiCorp was sold for $166 million more than its valuation of the unit."
The move to have a greater presence in the energy market is another example of Berkshire Hathaway's efforts to spend some of the more than $43 billion in cash and cash equivalents it had earned in 2004.
Berkshire Hathaway, Omaha, Neb., is a holding company engaged in a number of industries including the property and casualty business on a direct and reinsurance basis.
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