Buffett wants part of Kotak Bank for up to $6B – report

Business 12/7/2018, 9:11 AM
Buffett wants part of Kotak Bank for up to $6B – report

Berkshire Hathaway Inc. is considering a purchase of 10% of India’s Kotak Mahindra Bank Ltd. and it is willing to pay $4 billion to $6 billion, CNBC-TV18 reported on Friday, quoting anonymous knowledgeable sources. The transaction could be in the form of a so-called promoter stake or preferential allotment, according to the rumor.

The alleged plans of the investment conglomerate controlled by Warren Buffett were presented in connection with Uday Kotak’s obligation to cut his 30% stake to under one fifth of ownership, according to new regulations. The Reserve Bank of India refused to allow the founder, managing director and chief executive to sell nonconvertible perpetual noncumulative preference shares in August.

The second-largest bank in the private sector in India is based in Mumbai and run by Kotak Mahindra Finance Ltd. It jumped 8.9% to 1,238.05 rupees per share at 8:56 am CET at the NSE, after touching 1,345.95, the highest value since July 24.

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