BREAKINGVIEWS-Berkshire deal echoes Buffett's ethos and struggle

Taylor Morrison Home Corporation

TMHC

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The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

By Robert Cyran

NEW YORK, June 1 (Reuters Breakingviews) - Greg Abel's first major acquisition since becoming CEO is homebuilder Taylor Morrison for $6.8 bln. Investing in a hurting, US business with a theoretical 10% return comes straight from the Oracle of Omaha's playbook. It's also lost in a $1 trln company with $380 bln of cash.

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CONTEXT NEWS

Berkshire Hathaway said on May 31 that it had agreed to buy homebuilder Taylor Morrison Home for $72.50 per common share, or about $6.8 billion, excluding debt. The conglomerate is paying a 24% premium to the target's closing price on May 29.

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