Bill Gates pumps money into ethanol
On April 13th, Microsoft co-founder Bill Gates made a bet on Ethanol as America's future fuel when he bought a 25.5% stake in a leading ethanol production company.
Bill Gates holds a 25.5-percent stake in Pacific Ethanol Inc., resulting from a private transaction with the maker of corn-based fuel, according to a Securities and Exchange Commission filing.
Gates acquired 5.25 million shares convertible preferred stock on April 13 for $16 per share, the filing said. Those shares are convertible to 10.5 million shares of common stock.
Pacific Ethanol is building an ethanol production facility in California and said in late March it hoped the deal with Cascade Investment, Gates's investment vehicle, would close by mid-April.
In the SEC filing, Cascade said it acquired the common stock "for investment purposes only" and will continue to evaluate its ownership stake and voting position.
Cascade said it would leave open the possibility of continuing to hold the stock, disposing of it or acquiring more in the open market or through private transactions, and entering into short sales or other hedging transactions.
Pacific Ethanol (Research) shares jumped more than 6 percent in morning trade on Nasdaq.
Source: CNNMoney
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