Berkshire Hathaway, General Re To Close Merger

Berkshire Hathaway, Inc. and General Re Corp. say they have received a favorable tax ruling from the IRS which will allow their previously announced planned merger to be tax-free to both General Re and Berkshire shareholders (except for cash received by General Re shareholders in lieu of fractional shares). Accordingly, the merger closing has been scheduled to occur after the close of trading on the New York Stock Exchange on Dec. 21, 1998.

Under the terms of the merger agreement, each General Re shareholder will have the option to elect to receive either 0.0035 Class A shares or 0.105 Class B shares of Berkshire for each share of General Re common stock. Election forms will be sent to all General Re shareholders of record on the closing date. Any General Re shareholder not making an election by Mar. 1, 1999 will receive Berkshire Class B shares.

Because of the closing occurring prior to the usual record date, General Re will not pay a fourth quarter dividend, the company says.