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Lubrizol


mmiller

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Some interesting background just released on the Lubrizol transaction:

 

- Mr. Sokol initiated the idea

- Mr. Sokol had been working on multiple ideas in multiple industries with Citi

- Mr. Buffett would not raise his bid even $5 (of course)

- Berkshire insisted on no go shop

- Berhshire insisted on a minimum breakup of $200 mm

 

You can find it in the just released Lubrizol proxy.  I think this says much about Berkshire's deal making and the role of Mr. Sokol.

 

mmiller

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The thing that's a bit questionable to me was that he went to Citi to have them come up with ideas. Doesn't sound like something Buffett would do.

 

Indeed, but maybe it just means he's pretty busy running operations at a few businesses so he doesn't have time to sit and read annual reports all day like Buffett. What matters most is his judgement once a short-list has been established, and maybe if he were to become CEO, he'd have more time for research and dealmaking..?

 

Just my guess.

 

 

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