Home Capital investors reject investment from Buffett's firm
Posted September 12
OMAHA, Neb. — Shareholders of Canadian lender Home Capital Group have rejected Warren Buffett's offer to buy a second large block of stock in the company.
In June, Berkshire Hathaway agreed to lend $1.5 billion to Home Capital and bought roughly 20 percent of Home Capital's stock.
That deal included a provision for Berkshire to buy another 20 percent of Home Capital's stock for $10.30 per share if shareholders agreed. But 88 percent of non-Berkshire shareholders rejected that investment Tuesday.
When Toronto-based Home Capital agreed to the Berkshire deal, it was struggling with liquidity issues because Canadian regulators announced in April they were investigating the mortgage lender.
Home Capital Chairwoman Brenda Eprile says the company's financial position has improved since the spring, so it doesn't need the influx of cash as much.