Tuesday, August 26, 2014
Ironically, Buffett: The great patriot with the preference for US-established company to assist in a delicate operation Burger King supposedly. The fast-food chain wants to sell to Canada – and so the high taxes in their home market escape .
The American billionaire and major investor Warren Buffett wants to engage with the relocation of corporate headquarters to the tax-favorable abroad under the arms Burger King, according to a newspaper report. The after Bill Gates is currently the second richest man in the United States should play a crucial role in the planned for this purpose the acquisition of the Canadian coffee and donut chain Tim Hortons, told the “Wall Street Journal”, citing inaugurated circles.
Buffett’s holding company Berkshire Hathaway is therefore expected to finance about 10 billion dollars (7.6 billion euros) heavy Deal to 25 percent. Buffett, who relies heavily with its investment decisions on American traditional company would so fall in the middle of the public debate about US corporations, fleeing the comparatively high corporate taxes in the United States.
At the federal level, claims the public Hand in the United States about 35 percent of income, including local taxes, there are on average almost 40 percent. Against this background, more and more companies are looking for opportunities, the high tax burden to push through more or less creative decisions. In recent years, Buffett made repeatedly with philanthropic donations attention. Finally, the 83-year-old investor in July had over $ 2.8 billion to several charitable foundations.
Burger King reportedly negotiating with Tim Hortons to establish a new headquarters on Canadian soil in the context of a takeover. The sources of the “Wall Street Journal” According to Burger King could make the acquisition of Canadians already in the next two days in the bag.
Chess Moves by the ketchup pattern?
funding will put exactly on the legs, is still unclear, they say. However, observers feel strongly reminiscent of Buffett’s role in the 23-billion purchase of ketchup company Heinz which Berkshire had also propped together with the Burger King majority owner 3G Capital. 3G Capital is a private equity firm.
At the time Buffett had lucrative equity investments secured, while 3G got the operational control of the takeover target. That could be a model for the future in big deals, Buffett had said at the time.More on the topic
The enthusiasm of shareholders probably by including the legendary investor who has consistently demonstrated a knack, rise even further. Already at the beginning of the week the Burger King shares rose by almost 20 percent. Last quoted the Burger King papers at $ 32.33.
headwinds from Washington
A little joy in Washington is expected to trigger the Buffett / Burger King operation, however. President Barack Obama and many members of Congress, the tax-optimizing Übernahmetrickserei of U.S. companies have long been a thorn in the side.
But to do something about it, Democrats and Republicans would have to first of all agree on appropriate measures. So far, the U.S. laws make it relatively easy to move their headquarters abroad to save on taxes.
Dwindling tax revenues are likely to aggravate the financial situation of the United States sooner or later on. In addition, the migration of large corporations threatens to bring the fairness of the tax system in a dangerous imbalance.