A sign with a picture of President Warren Buffett welcomes a picnic Berkshire Hathaway shareholders at the annual meeting of BH in Omaha (Nebraska), April 30, 2011.
Credit: Reuters/Rick WilkingBy Ben BerkowitzOMAHA, Nebraska | Sun 1 May 2011, 4: 44 am EDT
OMAHA, Nebraska (Reuters)-Warren Buffett said he was wrong not on David Sokol on purchases of Lubrizol Corp. stock while his former top Lieutenant was pitching the chemical company as a possible takeover target for Berkshire Hathaway Inc.
It was that kind of answer investors had Hyam to hear from Buffett at this year's Berkshire annual meeting, usually a lovefest for tens of thousands of shareholders, and on which the Sokol episode had cast a cloud.
Sokol said Buffett Berkshire for knowledge rules by not to reveal its January purchase Lubrizol shares, less than four weeks after the commencement of negotiations with Citigroup Inc. bankers about the company had violated.
Sokol, who chaired Berkshire MidAmerican Energy Unit, ran his NetJets aircraft-leasing unit, and was a top Buffett deal maker, was considered a leading contender to succeed 80-year-old Buffett and Berkshire's chief executive.
But he resigned last month when his game Lubrizol was revealed. Sokol was given a $ 3 million profit on that game when Berkshire agreed to buy Lubrizol for about $ 9 billion.
The U.S. Securities and Exchange Commission is probing Sokol, a person familiar with the matter said. The controversy has Buffett's management called in question.
"I, of course, a big mistake by not say: ' well when did you buy it? '" Buffett said on Saturday, as he and Vice Chairman Charlie Munger fielded shareholder questions for five hours from the stage of the Qwest Center in Omaha, Nebraska.
Buffett calling the Sokol situation "inexplicable and inexcusable", he uses 20 years ago had used to describe the failure by the management at Salomon Brothers Inc., which he chaired, to tell regulators of wrongdoing tied to a Treasury scandal provide the same language.
He later told Reuters Insider are many criticism on 30 March press release announcing Sokol of dismissal "inept" had been.
Berkshire class A shares closed Friday at $ 124,750, and the class B shares closed at $ 83.30. Both groups were well represented at the meeting.
No comments:
Post a Comment