Bear Stearns in talks with Buffett
So the rumors turned out to be true. The New York Times has confirmed all the rumors that Bear Stearns was in talks to sell a large stake in itself. But who could have guessed they were talking to Warren Buffett? Other interested parties are said to include Wachovia, Bank of America and two Chinese institutions. This may be a great time to invest. The firm has been rocked by the credit crises. And, alone among the premiere firms, its earnings really suffered in the 3Q. And then there's Jimmy Cayne, the 73-year-old CEO, who may want to step aside soon. An opportunity for major change. Buffett and Cayne are both avid bridge players, but I'm not sure if they are friends. Recall Buffett once took a stake in the old Salomon Brothers way back in the 1980s.
For more:
- here's the Times article
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