This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Sokol's Trades: Timeline of Lubrizol Deal

NEW YORK ( TheStreet) -- David Sokol's resignation from Berkshire Hathaway (BRK.B) and the disclosures that Sokol, one of Warren Buffett's top lieutenants, was actively trading in shares of a company that recommended to Warren Buffett as a potential acquisition, has raised questions and eyebrows about the fine line Sokol walked in his Lubrizol deal involvement.

On Dec. 21, Sokol sold 2,300 shares of Lubrizol which he had bought a week earlier, a sale he said was done for tax planning purposes to match a tax loss, Sokol said on CNBC on Thursday.

On Jan. 5, 6 and 7, Sokol bought 96,060 Lubrizol shares as part of a 100,000-share order he had placed with a $104-a-share limit order.

Lubrizol shares ranged between $101.74 and $105.25 during the Sokol trading days. Berkshire's acquisition values Lubrizol at $135 a share.

Buffett and the Berkshire Hathaway board approved the deal on March 13 and announced it the next day.

Buffett said on March 19 he learned the specifics trades Sokol had made in Lubrizol shares.

Buffett said of the series of Lubrizol trades made by Sokol, "Dave's purchases were made before he had discussed Lubrizol with me and with no knowledge of how I might react to his idea. In addition, of course, he did not know what Lubrizol's reaction would be if I developed an interest. Furthermore, he knew he would have no voice in Berkshire's decision once he suggested the idea; it would be up to me and Charlie Munger, subject to ratification."

The role that Sokol played in ultimately bringing Warren Buffett and Lubrizol CEO James Hambrick to the table during a time when he bought a significant Lubrizol stake is the focus of the insider trading debate. What follows is a timeline of Sokol's key role in the Lubrizol deal leading up to the Buffett and the Berkshire board taking over the process and ultimately agreeing to acquire Lubrizol for $9 billion.

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

-- Written by Eric Rosenbaum from New York.



RELATED STORIES:



>To contact the writer of this article, click here: Eric Rosenbaum.

>To follow the writer on Twitter, go to Eric Rosenbaum.

>To submit a news tip, send an email to: tips@thestreet.com.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $124.43 0.00%
FB $82.22 0.00%
GOOG $548.00 0.00%
TSLA $188.77 0.00%
YHOO $44.44 0.00%

Markets

DOW 17,776.12 -200.19 -1.11%
S&P 500 2,067.89 -18.35 -0.88%
NASDAQ 4,900.8850 -46.5560 -0.94%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs