Salomon Inc. has agreed to repurchase about...

Salomon Inc. has agreed to repurchase about 21 million shares, or 14%, of its common stock from Minerals and Resources Corp. for $38 per share, or a total of $809 million. Salomon, the parent company of investment banking firm Salomon Bros., also announced an agreement to sell 700,000 shares of a new preferred stock to Berkshire Hathaway and certain affiliates for $700 million, representing a 12% stake in voting shares. The new preferred stock will pay a 9% dividend annually and may be converted after three years to common stock at $38 per share. Omaha-based Berkshire, which is headed by investor Warren E. Buffett, said it has agreed not to acquire more than 20% of Salomon’s voting securities during the next seven years. Buffett and Berkshire Vice Chairman Charles T. Munger will also join Salomon’s board, replacing two directors nominated by Minerals and Resources Corp.