Buffett Resisted Goldman Fee for $11.6B Alleghany Acquisition: Reuters - Berkshire Hathaway Inc. Common Stock (NYSE:BRK/A), Berkshire Hathaway Inc. New Common Stock (NYSE:BRK/B)

According to a recent regulatory filing, Warren Buffett needed just two weeks to put together Berkshire Hathaway Inc's (NYSE: BRK-B) $11.6 billion takeover of Alleghany Corporation Y, the insurer's largest acquisition in six years, despite his refusal to pay the insurer's banking charge, reports Reuters.
Alleghany's Chief Executive Officer Joseph Brandon met with Buffett for dinner in New York City on March 7. After some "casual conversation," Buffett offered $850 per share in cash for the company, less the fee for bankers at Goldman Sachs.
Brandon and Alleghany Chairman Jefferson Kirby met with Buffett in Omaha, Nebraska, five days later, where the latter asked Buffett to make a larger bid, pay Goldman's $27 million fees, or fund part of the transaction with Berkshire stock.
According to the filing, "Mr. Buffett reiterated the terms of his original offer, emphasizing firmly that he did not intend to change his position on those items."
Related: Why Alleghany Shares Are Surging Today
The merger was announced on March 21. Alleghany was given 25 days to find a better offer. Goldman has subsequently contacted 31 possible buyers about their interest, according to the filing. The "go-shop" period ends on April 14.
The Alleghany acquisition is expected to close in the fourth quarter.
Also Read: Merger Arbitrage Mondays - Berkshire Hathaway Acquires Insurer Alleghany For $11.6 Billion
Price Action: BRK-B shares are trading lower by 0.16% at $351.90 during the pre-market session on Tuesday.

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