Why NV Energy's Shares Jumped Today

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of NV Energy (UNKNOWN: NVE.DL  ) jumped 23% today after the company agreed to be bought out by Berkshire Hathaway (NYSE: BRK-B  ) .

So what: Berkshire's MidAmerican subsidiary has made the offer to purchase NV Energy for $23.75 per share, and both board have approved the deal. If all goes well, it is expected to close in the first quarter of next year.  

Now what: This is the latest major move into energy for Berkshire Hathaway as Warren Buffett looks to add consistent cash flow from the utility business. The move adds 2.4 million electric customers to the company and natural gas services to 145,000 people. Shares are trading within $0.10 of the offer price, and Berkshire isn't one to get into a bidding war, so I think now is a great time to sell NV Energy and cash out on today's pop.

Interested in more info on Berkshire Hathaway? Add it to your watchlist by clicking here.

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  • Report this Comment On May 30, 2013, at 6:23 PM, VegasSmitty367 wrote:

    The acquisition of NV Energy will add to his coffers. They are the biggest thieves on the west coast!

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Related Tickers

12/31/1969 7:00 PM
NVE.DL $0.00 Down +0.00 +0.00%
NV Energy CAPS Rating: *****
BRK-B $144.67 Down -0.33 -0.23%
Berkshire Hathaway… CAPS Rating: *****