Correction on USG
It has been brought to my attention that my previous post on USG contained some incorrect information. I mentioned that Buffet’s cost basis was $45. The fact is that his cost basis is a lot lower. Buffett acquired majority of his stake when the company was emerging from bankruptcy last summer. However, this does not change the point I was making, because he did acquire over 1 million shares on the open market at just under $46 last year. This reflects his conviction regarding USG. Despite owning the stock at much lower levels, he increased his cost basis by buying on the open market.
My apologies for the misinformation, but I maintain my position on the stock.
– Faisal Laljee
Yes, and on 12/14/07 they bought 6,600 at $36.4735 and 261,600 at $35.6588. This brings their ownership of USG to 12,307,928. Does anyone know if USG has a poison pill when an acquirer owns more than 15% of the outstanding stock? Warren Buffett was granted immunity from this provision when he guaranteed to buy any shares that weren’t suscribed to at the additional stock offering at $45 per share some time ago. He had 14 million shares at the time and I think got 3 million more through his guarantee. Also, he acquired most of his shares out of bankruptcy at a much lower price so he’s sitting on a nice profit. The real question now is what does GEBR. KNAUF VERWALTUNGSGESELLSCHAFT KG plan to do? Make a buy out offer while they acquire up to 15% of the 99 million shares outstanding? And, Why is there so much short squeeze money betting against USG? Isn’t it overdone? Anyone have any answers?