For all those still confused about the David Sokol thought process on Lubrizol, Keith McCullough from HedgeEye summarizes it best:
- Buy it in my PA
- Pitch Buffett
- Meet w/ the CEO
- Pitch Buffett again
- Buffett buys it
Any residual questions remaining: please refer to Buffett's later on the matter, as Berkshire will not answer anything else, or to anyone.
PS: great comment from a reader:
What people are missing is in plain sight: Sokol bought the stock with a "free option" not available to the public. If WB bit and bid for LZ, Sokol wins big (whether the likelihood was 5% or 50% does not matter), but if WB did not bite and passed, then Sokol would have non-public information that BRK would NOT be interested in LZ. In the latter hypothetical, any sale of LZ shares would then be an insider trade. A win/win situation for Sokol - last I checked, those are not available to the public.