Berkshire on Selling Its PetroChina Stake: “And Then What?”: “

Warren Buffett’s investment company, Berkshire Hathaway Inc., has rejected calls from ‘the media, shareholders and others,’ to sell its stake in PetroChina Co., whose parent company, China National Petroleum Corp., operates in Sudan — a nation accused of genocide. In a statement, Berkshire said selling its 1.1% stake (it is PetroChina’s biggest overseas investor) would not have a beneficial effect on Sudanese policy, since PetroChina isn’t even active in Sudan: ‘Subsidiaries have no ability to control the policies of their parent.’ Berkshire entered its PetroChina position in 2003 for about HK$1.70. Shares presently trade at HK$9.47, netting Berkshire over $2.3 billion on its investment. Analysts agreed with Buffett, saying investors likely confused PetroChina with its parent. Berkshire also said that any sale of China National Petroleum shares would almost certainly be bought up by the Sudanese government at a substantial discount, begging the question, ‘And then what?’

Sources: Berkshire Hathaway Statement (.pdf), Bloomberg
Commentary: PetroChina: Natural Gas Growth Expected to Continue • Comparing China’s Two Oil Giants • Asian Energy Fundamentals
Stocks/ETFs to watch: PetroChina Company (PTR), Berkshire Hathaway Inc. (BRK.A)

(Via SeekingAlpha China Stocks.)