Buffett offers German company its full stake in US building products maker USG

Billionaire investor Warren Buffett’s Berkshire Hathaway has offered to sell its shares in construction materials company USG Corporation to a German company, according to a regulatory filing released Monday.

Germany’s Gebr Knauf tendered a bid to buy USG earlier this month for $42 per share, valuing the company – which makes wall, ceiling, flooring, sheathing and roofing products – at nearly $6 billion. USG’s board rejected the bid, saying it undervalued the company.

Berkshire then offered up all of its shares in the company last week to Knauf, contingent upon the company’s willingness to buy all outstanding shares of common stock at a minimum price of $42 each.

According to Berkshire’s regulatory filing, Knauf had not yet responded to the company’s proposal, but had periodically contacted Berkshire to express interest “in a transaction with USG.”

Knauf is USG’s second largest shareholder, after Berkshire.

When shares of USG plummeted during the housing crisis, Berkshire jumped in and bought millions of dollars’ worth of debt. The company has turned into a profitable investment for Buffett.

Shares of USG climbed more than 18% during the midday hours of Monday’s trading session.