Warren Buffet invests $300m in Harley-DavidsonFiled under: Earnings/Financials, MotorcyclesHarley-Davidson has announced that Warren Buffet's Berkshire Hathaway group will invest $300 million in the motorcycle maker by through a purchasee of senior unsecured notes that will mature in 2014. These funds match a similar investment by Davis Selected Advisers, L.P., which is already the largest holder of company stock. Harley-Davidson will use the money to bolster its lending services, hopefully making it easier for the trouble motorcycle maker to lend cash to consumers. Berkshire Hathaway will reportedly receive a hefty 15% annual interest rate on the investment.The markets have responded to the news rather favorably, with H-D shares hitting $13.56 in trading yesterday afternoon - a 14% increase from where they started the day. Just about a week ago, H-D announced a plan to shed 10% of its workforce. This move marks the first time that Buffet has ever invested in the company. [Source: Bloomberg]Warren Buffet invests $300m in Harley-Davidson originally appeared on Autoblog on Wed, 04 Feb 2009 09:00:00 EST. Please see our terms for use of feeds.Read | Permalink | Email this | Comments
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