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URL:  http://boards.fool.com/he-has-negotiated-before-on-a-limited-basis-for-30544089.aspx

Subject:  Re: Berkshire buys Heinz Date:  2/15/2013  11:11 AM
Author:  DrtThrwingMonkey Number:  198661 of 211989

He has negotiated before on a limited basis. For example:

“We agreed to purchase 35,464,337 shares of MidAmerican at $35.05 per share in 1999, a year in which its per-share earnings were $2.59. Why the odd figure of $35.05? I originally decided the business was worth $35.00 per share to Berkshire. Now, I’m a “one-price” guy (remember See’s?) and for several days the investment bankers representing MidAmerican had no luck in getting me to increase Berkshire’s offer. But, finally, they caught me in a moment of weakness, and I caved, telling them I would go to $35.05. With that, I explained, they could tell their client they had wrung the last nickel out of me.



This is a nice example of the Latin proverb, exceptio probat regulam.

Imagine Buffett saying

"I never increase my price."
- Never?
"OK, well I did once. After a few days of constant harassment, and in a moment of weakness, I went from $37.00 to $37.05. But it hurt."

He can't say that any more. Well, maybe he can say, "3G ran the negotiations, it wasn't me." So maybe the record is still intact.

Regards, DTM
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