Warren Buffett Bails On WMDs, So Where Are They Buried Now?

| About: Berkshire Hathaway (BRK.B)


Is derivative risk hidden in Citi?

EQT buys Press Ganey.

Randstad buys Monster.

Welcome to the Bombs Away issue of M&A Daily

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Berkshire Hathaway

Warren Buffett sold the last of Berkshire Hathaway's (BRK.A/BRK.B) credit derivatives, which he labeled "financial weapons of mass destruction". But with Berkshire selling them and Bank of America (NYSE:BAC) selling them and JPMorgan (NYSE:JPM) selling them, who is buying them? We discuss the question here. Berkshire is up about 50% since I first disclosed the position.

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Press Ganey

EQT is buying Press Ganey (NYSE:PGND) in a $2.35 billion cash deal. PGND holders get $40.50 per share. The buyer is working with Bank of America and the target is working with Goldman (NYSE:GS) and Barclays (NYSE:BCS). Financing is coming from Credit Suisse (NYSE:CS), Citi (NYSE:C), and Bank of America.


Randstad (OTCPK:RANJY) is buying Monster Worldwide (NYSE:MWW) in a $429 million cash deal. MWW holders get $3.40 per share. The buyer worked with Wells Fargo (NYSE:WFC) and the target worked with Evercore (NYSE:EVR).


Polycom (NASDAQ:PLCM) secured HSR early termination for its acquisition by Siris Capital.


Outerwall (NASDAQ:OUTR) got its HSR review Eted for its acquisition by Apollo Global (NYSE:APO).


The S-4 was declared effective for the Cavium (NASDAQ:CAVM) acquisition of QLogic (NASDAQ:QLGC). The exchange offer expires today.

Mattress Firm

The definitive merger agreement was filed for the Steinhoff (OTCPK:SNHFY) acquisition of Mattress Firm (NASDAQ:MFRM).

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Whistler Blackcomb

Two of my favorite ski resorts are merging! Vail (NYSE:MTN) is buying Whistler Blackcomb (OTC:WSBHF) for C$187.50 in cash and 0.0975 MTN shares. The terms can be adjusted for the currency exchange rate.


The first S-4 amendment and the 13e-3 were filed for the Riverstone acquisition of Talen (NYSE:TLN).

Interactive Intelligence

Genesys is in talks to buy Interactive Intelligence (NASDAQ:ININ). More to come in future editions of M&A Daily

Elsewhere on Seeking Alpha

Disclosure: I am/we are long BRK.A, BRK.B.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: Chris DeMuth Jr and Andrew Walker are portfolio managers at Rangeley Capital. We invest with a margin of safety by buying securities at discounts to their intrinsic value and unlocking that value through corporate events. To maximize returns for our investors, we reserve the right to make investment decisions regarding any security without notification except where notification is required by law. We manage diversified portfolios with a multi-year time horizon. Positions disclosed in articles may vary in sizing, hedges, and place within the capital structure. Disclosed ideas are related to a specific price, value, and time. If any of these attributes change, then the position might change (and probably will).

Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.