The $850 price per share would be reduced for the fee payable to Alleghany’s financial adviser, which turned out to be $1.98 per share, putting the final price at $848.02. Kirby in Omaha, Neb., on March 12.īuffett made his case for a quick cash deal of $850 per share of common stock, “after some casual conversation at the March 7 dinner meeting” and again in Nebraska less than a week later, noting that there was no need for Berkshire to get any third-party financing to move forward. Instead, he said his offer “would be subject to both parties moving quickly to negotiate and announce a transaction,” during that first dinner meeting with Brandon and a subsequent meeting with Brandon and Alleghany Chair Jefferson W. (New York time) on April 14.īesides the breakup fee, also absent from Buffett’s deal proposal was need for any due diligence. The financial firm started reaching out to 23 potential strategic bidders and eight potential financial sponsor bidders on March 21, according to the filing. Three days later, on March 20, Berkshire and Alleghany executed the merger agreement and they jointly announced it to the world in a press release the following day.īehind the scenes, Goldman Sachs, Alleghany’s financial adviser, did, in fact, go shopping. Patrick’s Day videoconference was the third one held after Buffett and Brandon met over dinner in New York. “The Board discussed that the absence of a termination fee was highly unusual and favorable to the Company because termination fees made it more expensive for alternative and could discourage bidders from submitting proposals during a ‘go-shop’ period or thereafter during the ‘no-shop’ period,” the filing says, revealing what went on during a March 17 videoconference at which board members weighed the pros and cons of selling to Berkshire.
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