PS Group Removes Hurdle for Berkshire Stock Purchase

PS Group has modified its anti-takeover defense to clear the way for Berkshire Hathaway Inc. to acquire up to 45% of the San Diego-based company.

Omaha, Neb.-based Berkshire Hathaway, which serves in part as an investment vehicle for investor Warren E. Buffet, now owns 22.1% of PS Group’s shares.

PS Group’s board of directors on Friday modified corporate bylaws that prohibited Buffet from acquiring more than 22.5% of PS Group’s shares.

However, Berkshire Hathaway, which has indicated that it will seek additional PS Group shares, won’t be able to acquire more than 25% of PS Group’s common shares until after the Federal Trade Commission reviews possible antitrust considerations.

According to a prepared statement released by PS Group, Berkshire Hathaway’s future acquisitions of the company’s shares “will depend on price, market conditions, availability of funds and Berkshire’s evaluation of other investment opportunities.”

Berkshire, which holds large shares in Capital Cities/ABC Inc., Washington Post Co., GEICO Corp. and other companies, is known to be a largely passive investor. Buffet has agreed not to sell his PS Group shares to a hostile bidder, not to wage a proxy contest to oust PS Group’s board and not to oppose the company’s board, according to PS Group Vice President Larry Guske.

PS Group is an aircraft leasing and holding company that owns controlling interests in USTravel Systems Inc., a travel management company, and Recontek Inc., which recycles metallic hazardous wastes.