- Warren Buffett's Berkshire Hathaway (NYSE:BRKa) Inc (NYSE: BRK-A) has purchased additional shares in Occidental Petroleum Corporation (NYSE: NYSE:OXY), surpassing the 20% stake.
- In an SEC regulatory filing, Berkshire said it paid about $391 million for nearly 6.7 million Occidental shares between August 4 and August 8.
- The purchases gave Berkshire 188.4 million Occidental shares, or 20.2% of reported shares outstanding, worth $11.3 billion.
- Reuters said that a 20% stake would let Berkshire report its proportionate share of Occidental's earnings with operating results through the equity accounting method.
- Buffett's company also owns $10 billion of Occidental preferred stock.
- According to the Reuters report, some analysts have speculated that Berkshire could eventually bid for all of Occidental.
- Occidental share price has more than doubled this year, benefiting from rising oil prices following Russia's invasion of Ukraine.
- In July, Berkshire Hathaway spent over $100 million on Occidental Petroleum shares, raising its stake in the energy company to 19.4%.
- Price Action: OXY shares are up 2.33% at $61.44 during the premarket session on the last check Tuesday.
Read at Benzinga