CEO appears to have purchased 14K shares in open market.
As you are aware it is key for Oxy to repurchase debt.
Per 10-K.
Oxy has $31 BB in debt as of 12.31.2021. All fixed rate. Estimates every 25 basis points rise in rates will reduce debt fair value by approximately $629 MM.
So my take is as rates rise, OXY will be able to purchase debt in the open market at a reduced rate.
If rates rise 200 basis points, fair value may decline by $5 BB, while Oxy may be in a position to retire up to a $1 BB per month at current levels.
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CEO appears to have purchased 14K shares in open market.
This is correct. And what it tells us is that Buffett did not call with an offer to acquire Occidental in whole. She would not have made a purchase if an acquisition overture had been made recently.
So this makes it much more likely that he will just be a large minority shareholder for a period where a lot more of the EV goes to the equity as the debt is retired.
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Didn’t David Sokol buy Lubrizol stock right “before” Berkshire made an offer?
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I don’t think so. i think he just owned it and and did not disclose that to Berkshire in a timely manner.
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I think Sokol did buy a few million dollars worth of the stock personally a few weeks prior knowing the Berkshire offer may come to fruition but did not let WEB know up front of this. I recall he also positioned himself that he “found” the deal, when it was really brought to him by a third party. Seemed like a successful decent guy and up and comer who made some really poor decisions- cost him his reputation and a more limited career.
Reminds me of “Lose a shred of reputation…” I still honestly get goosebumps watching his speech to Congress wrt all the Salomon wrongdoing. Amazing chapter in the WEB story- Only WEB could have saved their arse after all of the Gutfreund screwups.
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and a more limited career.
He is doing fine.
Only WEB could have saved their arse after all of the Gutfreund screwups.
Berkshire had significant money tied to solomon at that time.
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