Close Share

PUBLISHED: Aug 21, 2014 9:51am

Fine for Warren Buffett unit

Coin Jar


Adjust Font Size:

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.”

How does this story make you feel?

  • Happy 0%
  • Sad 0%
  • Angry 0%
  • Shocked 0%
  • Nothing 100%




“If there are quarters which say there’s restriction on expression of opinions and views, the RoS can provide empirical evidence that the registered organisations are proof that the government gives such freedom. There is freedom of speech and movement; you can be as vociferous as you want so long as you do not threaten public order. Go on and gather as many members as you want so long as you do not touch on sensitive matters and violate the law, including the Sedition Act.”

Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi saying the government has never restricted freedom of speech, pointing out that 116,000 organisations were registered with the Registrar of Societies (RoS).


How do you like the new site

Leave your feedback here.

Have a story worth sharing?

Send us your details here.

Copyright © 2015 The Rakyat Post

Terms of Use ›   Privacy Policy ›   Contact ›