Here is the story that is repeated at lots of sites:
…dinner in New York City on March 7, where after some “casual conversation” Buffett offered $850 per share in cash for the company, less the fee for bankers at Goldman Sachs.
Five days later, Brandon and Alleghany Chairman Jefferson Kirby met Buffett in Omaha, Nebraska, where Kirby asked Buffett to make a higher offer, pay Goldman’s $27 million fee, or use Berkshire stock to fund part of the purchase.
“Mr. Buffett reiterated the terms of his original offer, indicating firmly he did not intend to change his position on those points,” the filing said.
Berkshire, which is based in Omaha, ultimately agreed to pay $848.02 per share, with the $1.98 difference from $850 accounting for Goldman’s fee.
It’s a funny way to conclude, if you think about it. Buffett originally offered $850 per share, total, no fee, and wouldn’t budge on that price. The way it has been reported, Buffett refuses to pay that fee, but in fact, that’s not the case. In the end, Berkshire IS still paying the $850, but that is now $848.02 going to Alleghany shareholders, and $1.98 going to Goldman.