DealZone

Simply, Buffett

February 5, 2009

Warren BuffettWhat’s one of Warren Buffett’s advantages in this environment, when credit is tight, markets are in disarray and deals are so difficult to do?

Simplicity, apparently.

The famed investor gave a financing commitment letter that was just two-and-a-half pages long in the Mars-Wrigley deal, said Timothy Ingrassia, Goldman Sachs’s head of mergers in Americas.

Compare that to deal contracts that average about 90 pages these days and commitment papers that run into hundreds of pages, Ingrassia said during a panel discussion at a Practising Law Institute seminar on M&A in New York.

Chicago-based Wrigley agreed to be acquired by Mars in April. Buffett helped to finance the deal. When it announced the deal, Mars said other financing would be provided by Goldman Sachs and JPMorgan Chase.

(Photo: Warren Buffett, REUTERS/Mario Anzuoni)

Comments
One comment so far | RSS Comments RSS

This evening Bloomberg TV Market site indicated thatTreasurer Geitner’s “window to halt flight of capital from US Banks may be closing.”
Why is that? Is it the taxpayers “bailout money?”

Posted by Joan Burk | Report as abusive
 

Post Your Comment

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/