Sokol faces the music at Berkshire Hathaway
Published 01/04/2011 | 05:00
DAVID Sokol who resigned on Wednesday as a top manager at Berkshire Hathaway, said he did nothing unethical when he bought stock in a company that he later proposed as a takeover target to ukulele-playing chairman Warren Buffett.
"I don't believe that I did anything wrong," said Sokol, who had been tipped as the heir apparent to Buffet's empire. "I can understand the appearance issue and that's why we made it public."
Sokol bought about 96,000 Lubrizol shares in January, less than two weeks before recommending the company as a target, Buffet said. Lawyers at the US Securities and Exchange Commission were reviewing Buffett's statement and discussing the matter.
"The SEC is going to look at that deal to check for insider buying and selling, so if there's an issue, the time to clean it up is now," said Daniel Genter, president of RNC Genter Capital Management in Los Angeles.
Berkshire Class A shares fell 1.5pc in New York Stock Exchange composite trading. Sokol was CEO of NetJets, Berkshire's luxury-flight subsidiary. (Bloomberg)