- According to a recent regulatory filing, Warren Buffett needed just two weeks to put together Berkshire Hathaway Inc's (NYSE: BRK-B) $11.6 billion takeover of Alleghany Corporation (NYSE:Y), the insurer's largest acquisition in six years, despite his refusal to pay the insurer's banking charge, reports Reuters.
- Alleghany's Chief Executive Officer Joseph Brandon met with Buffett for dinner in New York City on March 7. After some "casual conversation," Buffett offered $850 per share in cash for the company, less the fee for bankers at Goldman Sachs.
- Brandon and Alleghany Chairman Jefferson Kirby met with Buffett in Omaha, Nebraska, five days later, where the latter asked Buffett to make a larger bid, pay Goldman's $27 million fees, or fund part of the transaction with Berkshire stock.
- According to the filing, "Mr. Buffett reiterated the terms of his original offer, emphasizing firmly that he did not intend to change his position on those items."
- Related: Why Alleghany Shares Are Surging Today
- The merger was announced on March 21. Alleghany was given 25 days to find a better offer. Goldman has subsequently contacted 31 possible buyers about their interest, according to the filing. The "go-shop" period ends on April 14.
- The Alleghany acquisition is expected to close in the fourth quarter.
- Also Read: Merger Arbitrage Mondays - Berkshire Hathaway Acquires Insurer Alleghany For $11.6 Billion
- Price Action: BRK-B shares are trading lower by 0.16% at $351.90 during the pre-market session on Tuesday.
