- Warren Buffett's Berkshire Hathaway has reportedly been outbid in its latest attempt to spend its massive cash pile.
- According to CNBC, the conglomerate was beat out by the private-equity firm Apollo Global Management to purchase an IT distributor called Tech Data.
- Berkshire's cash pile has grown to $128 billion, according to recent filings with the Securities and Exchange Commission.
- Watch Tech Data and Berkshire Hathaway trade live on Markets Insider.
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Warren Buffett's Berkshire Hathaway has reportedly been outbid in its latest attempt to spend its massive cash pile.
Berkshire was outbid by the private-equity firm Apollo Global Management to buy an IT distributor called Tech Data, CNBC reported on Friday.
Tech Data announced late Wednesday that it agreed to be purchased by Apollo for $145 per share, or roughly $5.14 billion. The company said in a press release that the offer was increased from an initial bid of $130 per share.
According to CNBC, Apollo increased its bid after Berkshire offered $140 per share, valuing Tech Data at $5 billion excluding debt.
The company's board unanimously approved Apollo's boosted offer. Berkshire doesn't plan to submit another offer, CNBC reported.
Bank of America alerted Berkshire on November 19 about the deal's go-shop provision that allows other bidders to come in with higher offers before December 9, CNBC reported. By November 20, Buffett had decided to make an offer for Tech Data above Apollo's initial bid, according to CNBC.
Buffett's conglomerate has been sitting on a growing pile of cash in recent years. The company hasn't made a major acquisition since 2016, and analysts have been struggling to figure out why Berkshire isn't spending its cash.
Shares of Tech Data, which distributes IT hardware and software products from companies like Apple and Cisco, traded almost 12% higher on Friday morning.