Berkshire Hathaway Deal for Insurer Alleghany Is Great for Berkshire, Not so Good for Alleghany

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https://www.barrons.com/articles/berkshire-hathaway-alleghany-deal-51647877030


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Berkshire Hathaway’s agreement to buy insurer Alleghany for $11.6 billion looks like an excellent deal for Berkshire, but only a so-so one for Alleghany.

Berkshire Hathaway (ticker: BRK. A and BRK. B) said Monday that it would pay $848.02 a share in cash for Alleghany (Y), a 25% premium above Alleghany’s closing share closing price of $676.75 on Friday, or a 29% premium to Alleghany’s average stock price over the last 30 days.

The…