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Berkshire Hathaway Inc. Message Board

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  • Novalis_97 Novalis_97 Jul 26, 1998 11:00 AM Flag

    brk, axp at pe of 26

    From Page 2 of AXP's "Notice of Annual Meeting of
    Shareholders To Be Held April 27, 1998":

    "In connection
    with obtaining the approval of the Board of Governors
    of the Federal Reserve System to acquire up to 17%
    of the outstanding voting share of the Company,
    Berkshire and the Company have entered into an agreemenmt
    (effective for such time as Berkshire owns 10% or more of
    the Company's outstanding voting securities), and
    Berkshire has made commitments to the Board of Governors,
    designed to ensure that Berkshire's investment in the
    Company will at all time be passive. Pursuant to an
    additional agreement, so long as Berkshire owns 5% or more
    of the Company's voting securities and Harvey Golub
    is the Company's Chief Executive Officer, Berkshire
    and its subsidiaries will vote all Company common
    shares owned by them in accordance with the
    recommendations of the Board of Directors of the Company. Subject
    to certain exceptions, Berkshire and its
    subsidiaries will not sell Company common shares to any person
    who owns more than 5% of the Company's voting
    secruties or who seeks to change the control of the Company
    without the consent of the Company."

    Page 2 of
    this notice also states that Buffett owned 49,456,900
    AXP shares, or 10.6% of AXP, as of 12/31/97 (same as
    at 12/31/96). I think the above statement on Page 2
    of the proxy statement is definitive proof that
    Buffett has already or plans to signficantly boost his
    AXP stake from 10.6% to 17%. I believe that if you
    want to purchase more than 15% of a publicly traded
    company, you must obtain permission from the Federal
    Reserve Board to do so -- and, apparently, Buffett has
    received this permission and has had to reveal his plans
    to buy more AXP to the entire world in the process.

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