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To: Chuzzlewit who wrote (55033)	7/30/1998 11:34:00 AM
From: jhg_in_kc	Read Replies (1) \| Respond to of 176387

CTC, OT The day after the Berkshire Hathaway(BRKb) and General Reinsurance (GRN) merger was announced BRK.b closed at a new high of $2,705. As of Mon July 27th the close was $2,364. $2,705-2,364=341/2,705=12.6% decline. Also GRN is trading at a 3%+ discount to BRK shares (margin is shrinking as we get closer to final closing of merger). GRN is getting 18% stake in BRK and board seat. This decline in price (12.6% in BRK.b and the 3% disc in GRN relative to BRK) is getting close to the dilution of BRK i.e. 18% stake. One is getting at this priceGRN & Executive Jet for free as compared to the those who bought in at the closing high of $2,705 on 6/19/98. Buffett has taken his company's inflated price and swapped it for good tangible companies.He must be very happy that the price is no longer being "Bid up" when the merger takes place. But based on these numbers 18% expansion of the Berkshire stock,etc. etc., is there any way to tell how far Berkshire will fall due to the dilution? Probably not because there is another factor i reAd about. Some traders sold BRKB and bought GRN so they could get a discounted price for shares that would soon turn back into BRKB anyway. If you are interested, any comments about Berkshire's present valuation? It is down 16% in 30 days. Is this normal turmoil after a big merger? best wishes jhg