01:03:35 EDT Fri 29 Mar 2024
Enter Symbol
or Name
USA
CA



FP says Buffett rebuffed at Home Capital Group

2017-09-13 07:07 ET - In the News

The Financial Post reports in its Wednesday, Sept. 13, edition that on Tuesday Home Capital Group shareholders overwhelmingly rejected a second investment in the company by Warren Buffett's Berkshire Hathaway at a price below the current share value. The Post's Barbara Shecter writes that only 11.21 per cent of votes cast were in favour of the additional investment of nearly $247-million, which would have boosted Mr. Buffett's interest to 38.4 per cent from 19.9 per cent. HCG's board had recommended approving the second tranche, which was negotiated as part of the initial investment in June but required a shareholder vote. Don Johnson, whose e-mail to Mr. Buffett triggered the initial investment in HCG, says he was disappointed by the outcome of the vote. He believes the larger interest would have given Mr. Buffett more reason to help HCG in the months and years ahead. Mr. Buffett said last month that a rejection by shareholders of his plan to take a larger interest in HCG would not be cause for him to walk away from the investment. "We knew that could go either way," he said on Bloomberg Television. "We'd like to buy the stock but if they vote it down, if the shareholders vote it down, we'll be fine."

© 2024 Canjex Publishing Ltd. All rights reserved.