Burger King Worldwide Inc (BKW)’s Acquisition of Tim Hortons Inc. (USA) (THI): Is Warren Buffett Being a Hypocrite in Supporting the Deal?

Berkshire Hathaway Inc. (NYSE:BRK.A)’s Chairman, Warren Buffett surprised the Street today by saying that Tim Hortons Inc. (USA) (NYSE:THI) is more important to Canada than Burger King Worldwide Inc (NYSE:BKW) is to the U.S. The announcement came on the back of the uproar that happened earlier this week, after Burger King Worldwide Inc (NYSE:BKW) announced that it would be acquiring Tim Hortons Inc. (USA) (NYSE:THI) in a $11 billion deal and shifting its headquarter to Canada, as most people accused Burger King Worldwide Inc (NYSE:BKW) of shifting base to evade U.S. taxes. Howard Rosencrans, Founder of Value Advisory, and Robbert van Batenburg, Director of Market Strategy at Newedge, and Liz MacDonald discussed Warren Buffett’s defense of Burger King Worldwide Inc (NYSE:BKW) on Fox Business.

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“Tim Hortons Inc. (USA) (NYSE:THI) earns more money than Burger King Worldwide Inc (NYSE:BKW) does. I just don’t know how the Canadians would feel about Tim Hortons Inc. (USA) (NYSE:THI) moving to Florida. The main thing here is to make the Canadians happy,” Warren Buffett was quoted as saying.

It was also mentioned in the program that in Berkshire Hathaway Inc. (NYSE:BRK.A)’s last shareholders meeting, Buffett had said that he won’t be paying a dime more in individual taxes that he owes and Berkshire Hathaway Inc. (NYSE:BRK.A) also won’t pay a dime more in the corporate taxes that it owes.

Rosencrans feels that Buffett is a legendary investor and he will support what helps him in making money, according to Rosencrans the real question is what Barack Obama is going to do about the U.S. Corporations moving to other countries to evade taxes in the country of their origin.

Batenburg disagrees with Rosencrans, according to him, Buffett is a hypocrite who says something else and does something else. According to Batenburg, Buffett has been known for advocating the rule that everyone must pay their fair share of taxes, but his support of Burger King Worldwide Inc (NYSE:BKW)’s decision to move its headquarter to Canada hows that he doesn’t believe in that rule himself. 


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