FOR IMMEDIATE RELEASE
Berkshire Hathaway Inc. International Dairy Queen, Inc. 1440 Kiewit Plaza 7505 Metro Boulevard Omaha, Nebraska 68131 Minneapolis, Minnesota 55439
BERKSHIRE HATHAWAY INC.
INTERNATIONAL DAIRY QUEEN, INC.
Omaha, Nebraska and Minneapolis, Minnesota. October 21, 1997 - - Berkshire
Hathaway Inc. (NYSE:BRK) and International Dairy Queen, Inc. (NASDAQ:INDQ)
announced today that they have executed a definitive merger agreement pursuant to which
Dairy Queen will be acquired by Berkshire Hathaway through a merger into a wholly owned
subsidiary of Berkshire Hathaway. In the merger, the holders of shares of Class A and
Class B Common Stock of Dairy Queen can elect to receive for each of their shares either
$27 in cash or $26 in Class A or Class B Common Stock of Berkshire Hathaway, for a total
value of approximately $585 million, subject to a limitation that the amount of cash to be
issued in the merger will not exceed 55% of the total value of the consideration to be
received in the merger. The number of shares of Berkshire Hathaway to be received under
the stock election will be determined based on the market price for Berkshire Hathaway
shares during a 5-day trading period ending the day prior to the Dairy Queen shareholders'
meeting to approve the merger. Consummation of the merger is subject to the approval
of the outstanding shares of Class B Common Stock of Dairy Queen and certain other
It is anticipated that the merger will qualify under the Internal Revenue Code as a
tax-free reorganization for those Dairy Queen shareholders electing to receive Berkshire
Hathaway Common Stock.
The Board of Directors of Dairy Queen has unanimously approved the merger
agreement and recommends it to the shareholders for approval. It is anticipated that the
merger will close near the end of 1997 or early 1998.
Mr. John W. Mooty, Chairman of the Board of Dairy Queen, and one of its principal
shareholders, said "Our family will vote our entire 35% of the voting shares of Dairy Queen
in favor of the merger and will elect to receive Berkshire Hathaway Common Stock for all
the Dairy Queen shares owned by us. We are not interested in trading our Dairy Queen
shares for any other securities. I personally consider Berkshire shares to be one to the
finest investments that our family could make and we anticipate holding the shares
"In considering this merger, we took into consideration the best interest of the entire
Dairy Queen system, consisting of our employees, our franchisees, our territory operators,
our suppliers, our customers and our shareholders. The past success of the Dairy Queen
system has depended on their efforts and the future success of the Dairy Queen system
will also depend on their efforts. I am pleased to have the opportunity to work with Warren
Buffett in further enhancing the Dairy Queen system and at the same time to be able to
continue to work with Michael Sullivan, Dairy Queen's President and Chief Executive
Officer, and all of our people in this great organization," Mr. Mooty concluded.
Mr. Warren E. Buffett, Chairman of the Board of Berkshire Hathaway, stated, "Dairy
Queen is a business that I like, run by an outstanding management team. Dairy Queen
will be a great addition to the Berkshire family."
Dairy Queen develops, licenses and services a system of more than 5,790 Dairy
Queen stores in the United States, Canada and other foreign countries, featuring
hamburgers, hot dogs, various dairy desserts, and other beverages; approximately 410
Orange Julius stores in the United States, Canada and other foreign countries, featuring
blended drinks from orange juice, fruits and other fruit flavors, along with various snack
items; and approximately 45 Karmelkorn shoppes featuring popcorn and other treat items.
Berkshire Hathaway and its subsidiaries engage in a number of diverse business
For information, contact Marc Hamburg at Berkshire (telephone: (402) 346-1400)
and Chuck Mooty at Dairy Queen (telephone: (612) 830-0364).