Clayton Merger with Berkshire Hathaway Subsidiary Approved.Business Editors KNOXVILLE, Tenn.--(BUSINESS WIRE)--July 30, 2003 Clayton Homes, Inc. (NYSE NYSE See: New York Stock Exchange :CMH CMH Center of Military History CMH Commission on Macroeconomics and Health CMH Chief of Military History CMH Children's Memorial Hospital CMH Ceramic Metal Halide (General Electric light source) CMH Congressional Medal of Honor ) announced today its stockholders have approved the merger of Clayton Homes with a subsidiary of Berkshire Hathaway Berkshire Hathaway (NYSE: BRKA, NYSE: BRKB) is a conglomerate holding company headquartered in Omaha, Nebraska, U.S., that oversees and manages a number of subsidiary companies. , based on preliminary vote totals. At a special meeting of Clayton's stockholders held earlier today, approximately 52.4% of the outstanding Clayton shares voted for the merger. "We appreciate the intense loyalty that our stockholders have exhibited over the past two decades as a public company--and especially over the last four months," remarked Kevin T. Clayton, chief executive officer. "We believe this vote was clearly in the best interests of stockholders." The merger is expected to be completed in the next several days. As a result of the transaction, Clayton Homes, Inc. will become a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of Berkshire Hathaway, and each outstanding share of Clayton's common stock will be automatically converted into the right to receive $12.50 per share in cash. Clayton's common stock, which has been listed on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. , will no longer be publicly traded. Following the closing of the transaction, Clayton's stockholders of record will receive a Letter of Transmittal Letter of Transmittal A document used by security holder to accompany certificates surrendered in an exchange or other corporate action. by mail with instructions on how and where to forward their stock certificates to receive the $12.50 per share to which they are entitled. Clayton Homes, Inc. is a vertically integrated manufactured housing company with 20 manufacturing plants, 296 Company owned stores, 611 independent retailers, 86 manufactured housing communities, and financial services operations that provide mortgage services for 168,000 customers and insurance protection for 100,000 families. Berkshire Hathaway is a holding company owning subsidiaries engaged in a number of diverse business activities. The most important of these is the property and casualty insurance business conducted on both a direct and reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. basis through a number of subsidiaries. Certain statements in this press release are "forward looking" statements within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These statements are not guaranties of future performance and actual results may differ materially from those forecasted. Neither Berkshire Hathaway nor Clayton Homes, Inc. undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. |
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