Does Warren Buffett Hate Bankers?
An interesting quirk of Warren Buffett’s recently announced takeover of Alleghany is that Berkshire Hathaway will pay Alleghany shareholders exactly $848.02 per share, after initially offering $850.
The reason for the $1.98 per share deduction? Well, Buffett, didn’t want to pay the investment banking fees that are routinely included in mergers and acquisitions. In 2015, Buffett wrote that investment bankers are “mouths with expensive tastes” that “clamor to be fed,” adding “Money-shufflers don’t come cheap.”
There are other fees included in the deal price, such as the Lawyers that Alleghany hired to represent them, and Warren didn’t feel the need to exclude those fees from the deal price. It’s Just The Bankers That He Doesn’t Like
#Shorts
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