Warren Buffett is finally getting closure on a long-held investment he recently called disappointing.
USG agreed to a $7 billion buyout by Germany's Knauf after Buffett's Berkshire Hathaway threw its support behind a shareholder uprising. Berkshire is USG's biggest shareholder, with a stake of 31 percent, and had said earlier this year it would vote against USG's four director nominees after the company rebuffed an earlier Knauf bid.
Knauf is USG's second-largest shareholder. Chicago-based USG makes building materials such as drywall. Berkshire began acquiring the shares 18 years ago but the company has been troubled with bankruptcy and asbestos claims.
It emerged from bankruptcy in 2006 with Berkshire's help. But when the mortgage crisis hit, it needed a $300 million bailout from Berkshire in a deal that gave Buffett's conglomerate the chance to convert notes into shares.
In March, Berkshire said in a securities filing it offered its stake in USG to Knauf for $42 a share. The deal, announced Monday, values Berkshire's stake at $1.9 billion.
At last year's annual shareholder meeting, Buffett called the investment "disappointing." And last month, Buffett told CNBC it was the first time he can remember Berkshire voting against a director slate at one of its holdings. He said the directors "didn't represent our interests" about the decision to take that stance.
"For 18 years, it has not worked out that well," he said.
© CNBC is a USA TODAY content partner offering financial news and commentary. Its content is produced independently of USA TODAY.
As part of the "Connect, Support, House" strategy to reduce homelessness, Mayor Kevin L. Faulconer kicked off a daylong effort Thursday to connect homeless individuals living in downtown's East Village neighborhood with the supportive services they need to get their lives back on track.
Sparks from a passing vehicle -- not an arsonist, as previously believed -- ignited a wildfire that spread over about 100 open acres this week near San Diego Zoo Safari Park, authorities reported Wednesday.
Newspapers from Maine to Hawaii pushed back against President Donald Trump's attacks on "fake news" Thursday with a coordinated series of editorials speaking up for a free and vigorous press.
Authorities identified a 12-year-old girl who was found dead in San Vicente Reservoir, five days after she fell from a boat.
San Diego County has agreed to settle a pair of lawsuits filed by twin boys who were molested by their former foster father.
San Diego police said Wednesday that no charges will be filed at this time against a man accused in the fatal shooting of a bar manager following a fight between two groups in the Gaslamp District.
Scattered thunderstorms in the mountains during the afternoon and evening hours Thursday. High pressure will move westward, moisture drying out but slightly warmer through the weekend.