AIG, Buffett made bid for ailing hedge fund - WSJ
NEW YORK, Sept 30 (Reuters) - Investor Warren Buffett, American International Group (NYSE:AIG - news) and Goldman Sachs & Co. offered last week to buy Long-Term Capital Management LP for $250 million, a newspaper reported Wednesday.
According to this morning's editions of the Wall Street Journal, the Buffet bid would have required the ouster of Long-Term Capital founder John Meriwether.
The hedge fund rejected the offer, and later that same day agreed to a huge rescue plan involving 15 banks including Goldman and also the Federal Reserve, the paper reported.
Under the alternate bid, the fund's investors would have received 5 percent of the $4.6 billion their stakes were worth, the Journal said.
The buyout group intended to put up another $3.75 billion to run the portfolio, the paper added, citing sources familiar with the deal.
According to the paper Buffett was not available for comment and AIG, Long-Term Capital and Goldman Sachs declined comment.
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