Lucent new board member points to Buffett stake in LU
marketwatch.com
Lucent's new board member
Denham seen as link to possible Buffett stake
By Thom Calandra, CBS.MarketWatch.com
Last Update: 12:07 PM ET May 14, 2002
SAN FRANCISCO (CBS.MW) - A new Lucent Technologies board member has a strong connection to Warren E. Buffett's investing empire.
Attorney Robert Denham, newest member of the Lucent (LU: news, chart, profile) board of directors, is a senior partner and former managing partner at legal shop Munger Towles & Olson LLP in Los Angeles. The litigation firm's founder, Charles Munger, is vice chairman at Buffett's Berkshire Hathaway -- "and has been Warren Buffett's partner for 40 years," says Pravin Banker at The Financial Network Inc. in Connecticut.
Denham served as chief executive of Salomon Inc. (SSB: news, chart, profile) during the rough years, when Buffett's holding company, through the purchase of convertible trust preferred shares, controlled a large stake in the investment bank. Denham's work at Salomon was seen as the steady hand that carried the bank through allegations it had rigged the market for U.S. Treasury securities. He left Salomon in 1998, after presiding over the brokerage firm's sale to financial services giant Travelers Group (C: news, chart, profile).
The question for followers of battered telecom equipment maker Lucent is whether Denham is spending time with Lucent because of a financial interest in the company on the part of Buffett, his $120 billion Berkshire Hathaway, Munger or all three. Such a stake would mark a departure from Buffett's tech-wary investing style.
A Lucent spokeswoman, Michelle Davidson, said Tuesday the New Jersey company could not comment on ownership issues. "He is a deeply talented individual who offers a unique blend of very strong strategic and financial skills, and we are looking forward to his contributions," said Davidson about Denham. |
