Reading the runes from Omaha

Article Abstract:

Warren Buffet is taken seriously as an investor, which means that the acquisition of General Re by bis company Berkshire Hathaway has attracted interest. Berkshire's stocks have been used for the acquisition, which could mean that Buffet considers them overvalued, though he argues that synergy is the key issue. Berkshire will benefit from the acquisition in some ways, but Buffet does not appear to believe that his company's stock is inexpensive. His businesses are of good quality, so if they are not cheap, this applies even more to bsuinesses of lesser quality.

Berkshire Hathaway Inc., BKHT, General Re Corp., GRN

---

Insurance deal lacks premium rating

Article Abstract:

The stock prices of both General Accident and Commercial Union dropped after their merger was announced. Mergers of financial services companies are often difficult, though there will not be a problem of power sharing, Bob Scott, General Accident's chief executive, will be head of the new company, and John Carpenter, Commercial Union's chief executive, is to retire after the deal has been finalized. The new company will be 53.6% owned by Commercial Union stockholders and 46.4% owned by General Accident stockholders.

General Accident Fire and Life Assurance Corporation PLC (Perth, England), Commercial Union PLC

---

Cox adds engine power

Article Abstract:

Cox Insurance is acquiring Christopherson Heath, an automobile insurer managing a Lloyd's syndicate called Equity Red Star or 218. This helps offset Cox's other business which involves infrequent major claims, since motor insurance claims tend to occur more often but are smaller. Christopherson has not reported a loss over 20 years and reported a pre-tax profit of 4.5 million pounds sterling for 1995. Cox is carrying out a share issue to raise 38.7 million pounds.

Direct Property and Casualty Insurance Carriers, Fire, marine, and casualty insurance, Auto Insurance, Automobile insurance, Christopherson Heath, Cox Insurance Holdings PLC

Similar abstracts:

• Abstracts: Ringing the changes. Daniel Hall, Eversheds
• Abstracts: Demarcation lines disappear. Satellite positioning
• Abstracts: When the honeymoon ends. Wealth of advice. Serious players spot serious potential
• Abstracts: Investment opportunities and the structure of executive compensation. Estimates of economic rates of return for the U.S. pharmaceutical industry, 1976-1987
• Abstracts: Top tips for a sure Aim in the company nursery. Take Aim, but watch out for quicksand. Unlisted ways to avoid paying tax

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.