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PUBLISHED: Aug 21, 2014 9:51am

Fine for Warren Buffett unit

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NEW YORK, Aug 21:

US antitrust officials have fined Warren Buffett’s Berkshire Hathaway US$896,000 (RM2.84 million) for failing to notify regulators ahead of a large securities acquisition in December 2013.

Berkshire agreed to pay the civil penalty to resolve the case over the December 2013 purchase, the Justice Department said yesterday. The settlement must be approved by a US court.

“We made a mistake when we overlooked the filing requirement,” Buffett said in a statement.

The company ran afoul of US antitrust requirements when it failed to file papers announcing a purchase of securities in building products company USG that ended up taking its overall stake in USG to more than US$950 million.

Federal law requires Berkshire to provide advanced notification to regulators of purchases that lift its holding in another entity to more than US$283.6 million, the Justice Department said.

The rule is intended to give antitrust regulators an opportunity to determine whether to block deals that may flout antitrust laws.

Berkshire, a holding company with stakes across many sectors, previously violated the notification requirement with a June 2013 purchase of shares in life insurer Symetra Financial that took its holdings to more than US$310 million.

Buffett said Berkshire’s USG securities stake grew when USG redeemed convertible notes that Berkshire had originally purchased in 2008.

Berkshire “was effectively forced to convert the notes when they were called for redemption by USG in December 2013,” Buffett said.

“This event triggered a filing requirement for Berkshire and we were late in realising that fact.”

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“People want to lead a peaceful lives. The terrorists are short-sighted, and this is one of the causes of rampant suicide bombings. We cannot solve this problem only through prayers. I am a Buddhist and I believe in praying. But humans have created this problem, and now we are asking God to solve it. It is illogical. God would say, solve it yourself because you created it in the first place.So let us work for peace within our families and society, and not expect help from God, Buddha or the governments.”

Dalai Lama, the Tibetan spiritual leader, when asked about prayers for those who died in the Paris terrorist attack, says the world must not ask God to fix man-made problems.


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