Berkshire News Briefs - 9/25/13

Berkshire Hathaway Enters Detroit Bankruptcy Case (Bond Buyer)

Warren Buffett's bond insurance firm made its first appearance in the Detroit bankruptcy case with a brief court paper filed Saturday. [...] Attorneys for Buffet's Berkshire Hathaway Assurance Corp. on Saturday filed a court notice of appearance and request for service. [...] BHAC has about $400 million in exposure to Detroit's debt, mostly in sewer revenue bonds. All the BHAC insurance is a wrap on top of an original guarantee from Financial Guaranty Insurance Co. In addition to $384 million of sewer debt, the insurer also wraps a piece of the city's defaulted pension certificates, though the amount is uncertain.

Colorado Properties joins Berkshire Hathaway HomeServices (Vail Daily)

Berkshire Hathaway HomeServices, the new real estate brokerage network operated by HSF Affiliates LLC, announced on Monday that Colorado Properties is the network’s first resort-brokerage signee. Colorado Properties will begin operating as Berkshire Hathaway HomeServices Colorado Properties in October. [...] Colorado Properties, a full-service brokerage founded in 1971, operates six offices with 85 sales professionals and one of the area’s largest vacation rental companies. The company ranks among Prudential Real Estate’s Top 50 companies nationwide and is a top firm in the Vail Valley.

Prudential California Realty Becomes Berkshire Hathaway HomeServices California Properties (San Diego Business Journal)

Prudential California Realty became the first company to operate as a member of the new Berkshire Hathaway HomeServices network, and was renamed Berkshire Hathaway HomeServices California Properties, the company said. [...] Berkshire Hathaway HomeSevices California Properties has about 3,200 sales associates in 62 offices in Southern California and the Central Coast. It is one of the top five brokerages in the nation, the company said. Last year its agents closed nearly $11 billion in sales and more than 14,000 transactions.

Air Force Contracts Worth $97 Million Awarded Monday (Fool)

$19.9 million: going to Berkshire Hathaway subsidiary FlightSafety Services Corp to exercise a seventh option year on a contract to support Aircrew Training Systems for the McDonnell Douglas KC-10 aerial refueling tanker. FlightSafety will be both supplying and supporting all KC-10 training devices used in the Air Force's Operation and Training System Support Center through Sept. 30, 2014.

Rail Traffic Reaches Record Level (Seeking Alpha)

Total N. American rail traffic last week leaped to the highest levels in the 5 years I began tracking the series here. At 733k carloads it passed the previous highs despite both oil/chemical shipments and coal shipments falling slightly. Strength was seen in intermodal, auto, metals and stone products. The metal and stone product categories sit at or just below multi year record levels. [...] As for the carriers, Burlington Northern [merged with Berkshire Hathaway and Canadian National Railway Company saw their traffic also reach the highest level since I began tracking the series.

Buffett’s 9% Heinz Dividend Means 3G Cutting Jobs, Mini-Fridges (Bloomberg)

Since taking over at the Pittsburgh-based ketchup maker, Hees eliminated hundreds of jobs, grounded corporate jets and pulled the plug on mini-fridges at the office. Savings will help pay down $12.6 billion in borrowing supporting the deal. [...] The management turnover contrasts with Berkshire’s normal approach. When Buffett buys a company, he typically leaves senior employees in place and commits to holding the business forever. The practice makes Berkshire a buyer of choice for many sellers, he’s said.

Warren Buffett Offering Options For MN’s Famous Dairy Queen Manager (WCCO 4 Minnesota)

Joey Prusak saw a woman steal $20 from a blind customer at the Dairy Queen where he works. So he gave the guy his own cash. [...] “Warren Buffet called me this morning and we talked for about 10 minutes,” Prusak said. One of the world’s richest people was calling over a $20 bill. “I go, ‘What I would like to know is why you’re calling here?’ He goes ‘I just wanted to call and thank you for all that you did. It means a lot to me,’” Prusak said. Buffet’s company owns Dairy Queen, and Buffett said he’s planning future talks with Prusak.