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USG Board Doesn’t Have to Face Challenge To Berkshire-Backed $7B Sale

By  |  September 1, 2020

USG’s board doesn’t have to face a challenge to the US$7 billion sale price it accepted from Gebr Knauf KG in a deal pushed by Berkshire Hathaway, a Delaware judge ruled, saying the lawsuit was doomed by a charter provision shielding USG’s directors from mismanagement claims.

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    “It was no secret to USG’s stockholders that the board preferred to sell USG for more,” Vice Chancellor Sam Glasscock III wrote in an 87-page Chancery Court ruling Monday, August 31, reported Bloomberg Law. 

    In 2018, USG agreed to be acquired by Germany’s Gebr Knauf KG for US$7 billion, capping months of deal talks between the two building-materials firms and USG’s largest investor, Warren Buffett’s Berkshire Hathaway