Buffett keen on acquisition of majority stake in state-owned insurance company
10 May 2010
Warren Buffett, the legendary US investor is said to be keen on acquiring a majority stake in a state-owned general insurance company in India.
Buffett is scheduled to visit India next year and the Berkshire Hathaway chief executive is expected to take up the issue with the union government according to a Business Standard report which cited unnamed sources involved with planning his visit next March.
According to current rules, the government cannot shed its stake in the four public sector general insurance companies - New India Assurance, United India Insurance, National Insurance and Oriental Insurance.
Buffett had told shareholders last week that he did not rule out India as a possible investment destination for Berkshire investments.
He added that the investments could be in companies or marketable securities, though bureaucratic obstacles could complicate any plans to invest, including limitations on foreign ownership.
He added that he wanted to enter the Indian insurance business. Insurance and reinsurance are the main lines of business for Berkshire.
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