Facing a financing void? Call Warren Buffett

Facing a financing void? Call Warren Buffett 
BUYING SPREE: Mr Buffett has announced at least 28 purchases for Berkshire in the past two years. 
 
NEW YORK - IT’S Mr Warren Buffett to the rescue.
The multi-billionaire investor’s Berkshire Hathaway has helped finance a second take-

over in the past three months, as tightening credit leads the world’s biggest banks to retreat from backing deals.

Mr Buffett, who has announced at least 28 purchases for Berkshire in the past two years, committed US$3 billion (S$4.08 billion) on Thursday to Dow Chemical’s US$18.8 billion purchase of Rohm and Haas.

In April, he put up US$6.5 billion to assist Mars’ takeover of Wm Wrigley Jr Co.

‘The word is clearly out on Wall Street that if you want capital, Warren’s someone to speak with,’ said Mr Tom Russo, a partner in Gardner Russo & Gardner.

Mr Buffett, 77, is funnelling some of Berkshire’s US$35 billion into a financing void after US$408 billion in losses on United States sub-prime mortgages prompted banks to hoard capital and slow lending.

He built Berkshire over four decades from a failing maker of men’s suit linings into a US$185 billion investment company. It has been buying up dozens of businesses that sell products from lollipops to manufactured homes and corporate jet leases.

BLOOMBERG NEWS

Source : Straits Times - 12 July 2008

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