Investor Warren Buffett is helping finance Burger King Worldwide
Inc.'s planned takeover of Canadian coffee-and-doughnut chain Tim
Hortons Inc., according to people familiar with the matter, in a
surprise twist that could add to investors" enthusiasm for the
deal.
The Berkshire Hathaway Inc. chairman and chief executive would
invest in the deal in the form of preferred shares, some of the
people said. Berkshire is expected to provide about 25% of the
deal's financing, one of the people said. The exact structure of
Mr. Buffett's participation in the deal remains unclear, and the
discussions are ongoing.
The takeover, likely valued at around $10 billion or more, could
be announced in the next day or two, according to the people.
Shareholders cheered the potential tie-up Monday, after the
companies confirmed they were in discussions, sending stock in both
companies soaring nearly 20%. Mr. Buffett's participation in the
deal may add to that enthusiasm given his reputation for shrewd
investing.
Julie Jargon contributed to this article
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