Should Warren Buffett buy Walgreens?
Morning Business Outlook: Drugstore chain Walgreens is reportedly exploring whether to go private and as held preliminary talks with major private equity firms; coffee giant Starbucks has unveiled its latest holiday cup.
Billionaire Warren Buffett is sitting on plenty of cash and has been wanting to make a major acquisition for some time now.
Could Walgreen's be on his radar?
That's a question raised by Barron's following a Reuters report that the drugstore chain has explored going private.
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FBN’s Liz Claman talks to billionaire Warren Buffett about Berkshire Hathaway’s massive cash pile.
Walgreens Boots Alliance has a market value of $55 billion, which would make it the largest leveraged buyout ever.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| WBA | WALGREENS BOOTS ALLIANCE INC. | 8.77 | +0.03 | +0.34% |
At the end of the third quarter, Buffett's Berkshire Hathaway had a cash balance of $128 billion.
Warren Buffett, Chairman and CEO of Berkshire Hathaway, smiles as he plays bridge following the annual Berkshire Hathaway shareholders meeting in Omaha, Neb., Sunday, May 5, 2019. (AP Photo/Nati Harnik) (AP Photo/Nati Harnik)
Walgreens is Buffett's kind of company. It's an easy-to-understand business that has an inexpensive valuation, according to Barron's.
What could an offer look like? Barron's says Berkshire could offer $75 to $80 a share or about $70 billion, in an all cash-deal or some mix of cash and Berkshire stock.
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Berkshire had no immediate comment to Barron's.