Subject: Re: OxyChem Deal: , another opinion,
BRK doing a deal with a OXY when BRK is a major OXY shareholder is like paying yourself. In this case the purchase converts BRK cash into ownership of the chemical company as well as reducing debt and increasing cash at OXY. Reducing debt at OXY provides direct value to BRK. BRK uses $9.7B cash and gets the chemical business worth supposedly >$10B and 32.7% of $6.5B debt pay down and the same percentage of $9.7 - $6.5B = $3.2B of cash at OXY.

So net advantage to BRK:
>$10B chemical business
$2.12B OXY debt pay down
$3.2B OXY cash infusion
———
Total benefit $15.32B

Shaun