Berkshire Hathaway Pays $72.50 Per Share in $8.5B Taylor Morrison Deal
TMHC•Berkshire Hathaway is paying $72.50 per share in an $8.5 billion all-cash takeover of Taylor Morrison Home, a 24% premium to its market price. RBC Capital downgraded the stock to Sector Perform and a law firm is probing whether shareholders received fair compensation.
1. Acquisition Details
Berkshire Hathaway will acquire Taylor Morrison Home for $72.50 per share in an $8.5 billion all-cash transaction, including $6.8 billion for equity and the remainder to cover debt. The offer represents a 24% premium over the pre-announcement market price and secures control of the homebuilder’s operations in 21 markets.
2. Analyst Downgrade
Following the deal announcement, RBC Capital cut its rating on Taylor Morrison Home from Outperform to Sector Perform, citing limited upside beyond the fixed acquisition price. The downgrade reflects analysts’ view that share appreciation is capped before the deal closes.
3. Legal Investigation
Halper Sadeh LLC has launched an investigation into whether the $72.50 per share offer adequately compensates Taylor Morrison shareholders. The probe will assess if the board fulfilled its fiduciary duties in negotiating the highest possible price.
