London, Oct 26: Long- term capital management, the hedge fund that nearly collapsed before a bailout organised by the US federal reserve, could be bought out by billionaire investor Warren Buffet, The Times newspaper reported.In its Monday edition, the paper said Buffet, one of the world's richest men, could take over the 90 per cent stake acquired by the 14 Wall Street banks who saved the LTCM from going down following huge exposures to volatile emerging markets.
The report said that LTCM was currently worth $3.8 billion and if legal problems could be resolved, Buffet would probably pay less than $4.0 billion.
``He may wait until the fund has been stabilised before making an offer,'' The Times said.
This would be the second bid by Buffet for LTCM. His earlier offer did not materialise as LTCM's founder, John Meriwether, a former trader at investment firm Salomon Brothers, did not want to leave the firm, one of Buffet's conditions for a takeover.
Buffet, who runs the BerkshireHathaway investment company, saved Salomon Brothers in 1991 from the brink of collapse.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
Printer-friendly page
