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Nikeup amid speculation of Buffett interest
Reuters Story - May 28, 1997 10:42
FINANCIAL MUL US REC HOT INS NKE BRKa V%REUTER P%RTR
NEW YORK, May 28 (Reuter) - Nike Inc shares ran up in heavy
New York Stock Exchange trade early Wednesday on market
speculation Warren Buffett, chairman of Berkshire Hathaway Inc
, likes Nike as an investment.
"Apparently, there is something out there about GEICO
(Berkshire's insurance unit) owning a big stake. It was
probably done (purchased) when everyone panicked," said a
trader, referring to Nike's decline to a recent low early last
month of about 51-1/4.
Nike's Class B stock was up 3-1/2 to 63-1/2, after more
than 2.4 million shares traded on the NYSE.
More specifically, another trader said, the Berkshire
interest in Nike as an investment is likely coming from Louis
Simpson, president and CEO of GEICO Capital Operations,
Buffett's often-rumored heir apparent.
"I heard that is it is not him (Buffett) buying the stock,
since he said at the (Berkshire) annual meeting he did not
understand the sneaker business," the trader said. The trader
added that she too had heard talk that Simpson has acquired
shares in Nike.
Buffett's office and GEICO declined to comment, while a
Nike spokesman was not immediately availble to comment.
Meanwhile, Berkshire's Class A shares were off 100 to
42,900 and Berkshire's Class B shares slipped five to 1429.
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