Great new write up by Jim Sloan:
“The story of Occidental and Vicki Hollub is replete with ironies. The role of Buffett involves actions that are very much in character. Buffett is willing to be the lender of last resort like the great merchant bankers of yore, but he doesn’t rescue cash-strapped companies for free. The Texas Monthly article linked to critics who called his deal usurious, among them Carl Icahn who jumped on the terms of the deal as part of his argument for replacing Vicki Hollub and the OXY board. For Buffett it had simply been a matter of calculating the probabilities. The chances of OXY’s survival seemed to be fairly good but his $10 billion loan needed to be structured so as to put him near the top of the list of creditors.”
With the current “ESG” mantra permeating corporate board rooms, how many CEOs today would fund a “dirty” oil and gas deal, only later to double down on it?