The Oracle of Omaha, Warren Buffett, is ruling out a bid for the Royal Bank of Scotland Group plc's insurance operations and instead is targeting
family-owned European companies to add to the portfolio of Berkshire Hathaway Inc., according to reports.
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Berkshire has
$35 billion in cash, and with the credit crisis and the depreciating dollar, it's not a surprise Buffett would look abroad. Buffett is a huge fan of old, sturdy, family-owned businesses like Wm. Wrigley Jr. Co., which he helped Mars Inc., another family-owned business, acquire in April, and it just so happens that Europe is full of them.
Buffet's visit to Europe was apparently arranged by both Eitan Wertheimer, president of Israel's Iscar Metalworking Cos., which Berkshire purchased in 2006, and Angelo Moratti of Italy's Saras SpA,
according to Bloomberg.
When asked about what sectors and companies Buffett could be interested,
he said, "I understand consumer goods and basic manufacturers reasonably well," and also the insurance business.
So what are those potential targets in Europe? According to several reports: the confectionery firm famous for the gummy bear,
Haribo GmbH & Co. KG;
Swiss watchmaker Swatch Group Ltd.; railroads; and
real estate brokerage firms.
-- Maria Woehr
