Citi bankers who met with David Sokol to discuss the potential sale of Lubrizol were shocked that he subsequently bought shares in the chemical company, the WSJ reported.Sokol, a top executive at Berkshire Hathaway and a contender to succeed Warren Buffett, resigned from the company suddenly last week, in connection to the stock purchase.
The bankers he met with at Citi “were unaware… that he had any intention to buy shares himself,” Reuters said.
Berkshire Hathaway acquired Lubrizol for $9 billion a few weeks ago.
According to the WSJ, when Sokol met with Citi to discuss Lubrizol, Sokol “didn’t say he was personally interested in buying Lubrizol shares.”
It nonetheless came as a “shock” to the Citigroup bankers when they learned Mr. Sokol bought roughly $240,000 of shares of Lubrizol Corp. a day after their meeting, sold them, and then purchased $10 million shares about two months before Berkshire’s $9 billion deal unveiled March 14 to acquire Lubrizol, according to people familiar with the matter.
The shares are valued at nearly $13 million now.
According to Reuters, Sokol’s investment earned him about $2.98 million when Berkshire acquired the company.