Those seemingly clairvoyant speculators who hoovered up Heinz stock options just before Warren Buffett and 3G Capital of Brazil launched their joint $28bn bid were always going to get nabbed.
And now they have been. Rodrigo and Michel Terpins, Brazilian brothers, have agreed to pay a fine of $3m and forfeit the $1.8m they made cashing in their Heinz options — funds that were frozen in a Swiss brokerage account by the SEC immediately after the trades were noticed, even though the American regulator didn’t then know who was behind the trades. Read more
There’s been a fierce and fascinating response from the SEC to evidence of clairvoyant dealings in Heinz ahead of news of the Buffett/3G Capital takeover offer. The statement is here and the full SEC complaint is here.
Following reports of unusual activity in Heinz call options on Nasdaq on Wednesday – the day before the Heinz news broke — the SEC has obtained an emergency order freezing assets in a Zurich, Switzerland-based trading account which it reckons benefited to the tune of $1.7m from the Buffett/3G bid. Read more
Breaking pre-market news on Monday,
– Aberdeen Asset Management says it has seen some slowing of gross inflows — statement. Read more
… and when he looks back at Thursday’s interview with CNBC it might be with some regret.
When you are in a hole, stop digging etc… Read more
Warren Buffett has stepped up his warnings over the impact of any move by the US Congress to bring in retroactive rules on the use of derivatives contracts, reports the FT. The Berkshire Hathaway chief executive reassured a crowd of 37,000 at the investment vehicle’s annual meeting at the weekend that the plans would not cost the company “a dime”. But he said that counterparties to Berkshire’s portfolio of derivatives deals would face increased costs.
On Tuesday, Bloomberg scooped its rivals with a story that Goldman “cuddly squid” Sachs would be teaming up with Warren Buffett to provide assistance — ranging from counseling to help in obtaining funding — to 10,000 small US businesses.
But they’re not the only ones getting in on the helping middle (market) America game, as the La Times reported: Read more
The chief executive of Burlington Northern Santa Fe Corp said Warren Buffett’s Berkshire Hathaway is liquidating its stakes in rival railroad companies Norfolk Southern Corp and Union Pacific Corp, as Berkshire prepares to close its purchase of BNSF, reports the WSJ. According to a regulatory filing, BNSF CEO Matthew Rose told staff on Nov 3 that Berkshire “will be disposing of both those holdings between now and the transaction date”.