Buffett pledges US$1.5 billion to charities

NEW YORK - Billionaire American businessman Warren Buffett today said he would make annual stock donations to the Bill and Melinda Gates Foundation.

In a letter to the foundation, Buffett said he would set aside 10 million shares of class B common stock for the foundation, and award 5 per cent of the balance of those shares once a year.

One share of class B was worth US$3,071.01 based on Friday's closing price on the New York Stock Exchange.

Based on that price, the first year's gift of 500,000 shares would be worth more than US$1.5 billion.

Buffett is the Chairman and Chief Executive of investment company Berkshire Hathaway.

Buffett, 75, added he is in "excellent health," but said he is writing a new will that would ensure the gift continues to be distributed after his death. The gift is contingent on one of the Gateses continuing to be involved in the foundation, Buffett said.

He also pledged annual gifts to a foundation established for his late wife, Susan Thompson Buffett, as well as children Howard, Susan and Peter.

Buffett is giving away 85 per cent of his stock to the foundations, according to an article in the July 10 edition of Fortune. The Gates foundation is receiving five-sixths of the total.

Berkshire Hathaway officials were not immediately available for comment.

Buffett's announcement comes after Microsoft Corp co-founder and Chairman Bill Gates, 50, said he would move away from his day-to-day role at the Redmond, Washington-based software company to focus more on his charity work.

At US$30 billion, the foundation is one of the world's richest philanthropic organizations. It has committed millions of dollars to fighting diseases such as malaria and tuberculosis in developing countries, and to education and library technology in the United States.

- REUTERS