On May 24,2005, Warren E. Buffett, the chairperson and chief executive officer (CEO) of Berkshire Hathaway Inc., announced that MidAmerican Energy Holdings Company, a subsidiary of Berkshire Hathaway, would acquire the electric utility PacifiCorp. In Buffett's largest deal since 1998, and the second largest of his entire career, MidAmerican would purchase PacifiCorp from its parent, Scottish Power plc, for $5.1 billion in cash and $4.3 billion in liabilities and preferred stock. "The energy sector has long interested us, and this is the right fit," Buffett said. At the announcement, Berkshire Hathaway's Class A shares closed up 2.4 percent for the day, for a gain in market value of $2.17 billion. Scottish power's share price also jumped 6.28 percent on the news; the S&P 500 Composite Index closed up 0.02 percent. Exhibit 1 illustrates the recent share-price performance for Berkshire Hathaway, Scottish Power, and the S&P 500 Index. Then