BUFFETT PUTS MONEY WHERE HIS MOUSE IS.

Byline: Russ Britt Daily News Staff Writer

Investor Warren Buffett wants to convert all his $2.5 billion in Capital Cities/ABC holdings to Walt Disney Co. stock, but the world's richest man will have to settle for a mix of cash and shares instead.

That's because the vast majority of the 9,600 Capital Cities shareholders have voted to convert their shares into Disney stock following the companies' merger, officials said Thursday. The deadline for picking stock or cash was Thursday afternoon.

Investors are snapping up all the 154.6 million shares of Disney stock that will be issued, forcing the company to divvy up the stock and return some cash to Capital Cities shareholders. Buffett's investment company, Berkshire Hathaway Inc., which holds 20 million shares, will get the same ratio of stock and cash as other Capital Cities investors.

"It is a vote of confidence," Disney spokesman John Dreyer said of Buffett's decision.

Investors are receiving the equivalent of $127 in a combination of Disney stock and cash for each share of Capital Cities stock they hold. For the purpose of the sale, Disney stock was priced at $62 a share at that time. It closed at 66-7/8 Thursday, up -3/8.

Disney expects to announce next week the ratio of stock and cash that will go to Capital Cities investors.

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PHOTO

Photo (Color) Disney CEO Michael Eisner, left, Warren Buffett, Disney President Michael Ovitz and Buffett's wife, Susie, celebrate the purchase of Cap Cities/ABC.