I think if Buffett has decided to buy Davita, you and I will be the last to hear about it. Buffett safeguards his reputation and after the Sokol-Lubrizol affair, any takeover talks will be kept under the wrap till the announcement.
I think Buffett will have to pay at least $ 150 per share & the management has to be on board.
One thing is for sure: 'Kidney Dialysis' is outside Buffett's circle of competence in that he will not be doing the Dialysis BUT will depend on the competent and honest management to do the job. Charlie Munger will be worried about the liability issues in any health care operation.
All in all Warren may pay up $ 150 per share but I am buying the stock on other points & will be happily surprised if I wake up monday morning to news that Buffett Buys DVA.
There certainly has been a lot of accumulation at the 106-110 range. Berkshire now holds approx 14+% of the outstanding shares. Up from the last 13f report. It would be a nice acquisition target for Buffet as the cashflows are powerful.
davita is Lubrizol II for Buffett. Same $ 10 Bill. price range, similar moat like protection, similar speciality business, similar captive market, similar demand for products ( speciality medical services vs speciality chemicals.
COME ON Mr. Buffett, do we have a deal at $ 150 or even $ 175 ?