Buffet prepares for giveaway

2006-07-11 14:08

Omaha - Billionaire investor Warren Buffett has begun converting 474 998 Class A shares of his investment company, Berkshire Hathaway Inc, to Class B shares, so he can give them away.

As he outlined on June 25, Buffett will start giving away the bulk of his $43.2bn fortune this month through annual gifts of Class B Berkshire stock to five foundations, with the biggest gift going to the Bill & Melinda Gates Foundation.

Buffett converted 124 998 of his Class A Berkshire shares, worth about $11bn, to Class B shares on Friday, according to documents filed Monday with the Securities and Exchange Commission. One Class A share, which sold for $91 000 on Monday, can be converted into 30 Class B shares, which closed at $3 033.80.

After the transaction, the world's second-richest man held 350 000 Class A shares and 3.75 million Class B shares of the company he shaped.

Berkshire owns a diverse mix of more than 60 companies, including insurance, furniture, carpet, jewellery, restaurants and utility firms. And it has major investments in such companies as H&R Block Inc, Anheuser-Busch Cos Inc and Coca-Cola Co.

Buffett has said he plans to give 10 million B shares to the Gates Foundation over time, 1 million B shares for the Susan Thompson Buffett Foundation named in honor of his wife and 350 000 shares for each of the three foundations run by his three children.

Buffett said he plans to give each foundation 5% of his total pledge each year in July, meaning he'll distribute 602 500 Class B shares of Berkshire stock this month.

- SAPA