Berkshire Hathaway Enters Reinsurance Arrangement 4 Hot Stocks Seeing Action

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Statements by Oshkosh Corporation (NYSE:OSK) regarding the tender offer at $32.50 per share by Mr Carl Icahn have drawn a strong response from the activist investor. In a press release, he brushes off the insistence by the Oshkosh Board of Directors that his tender offer was conditional. Further, he is critical of the board’s capital allocation and business strategy that seeks to purchase company shares after they traded over $30 per share, yet did nothing when they traded at an average $22.34 per share through fiscal 2012. “Disingenuous, with its sole purpose being to try to defeat our tender offer,” comments Icahn.

Bank of America‘s (NYSE:BAC) holding of 24.9% in Chinese leasing company CCB Financial Leasing Corp has been sold in full to the bank’s joint-venture partner, China Construction Bank (CCB). The leasing company is now fully owned by CCB. The transaction was approved Thursday by the China Banking Regulatory Commission.

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After the 2010 deal to sell its Indian operations to HSBC Holdings plc (NYSE:HBC) fell through, Royal Bank of Scotland Group plc (NYSE:RBS) has decided instead to liquidate the business. Comprising assets of about £190 million as at September 30 and serving 400,000 customers, the business operated 31 branches and had revenues of £42 million for the nine months ending in September. RBS had been hoping to receive a premium of £59 million on the book value of the business.

Warren Buffett’s investment vehicle Berkshire Hathaway (NYSE:BRKB) has entered a reinsurance arrangement that will acquire the future cash flows of a portfolio of life insurance policies from Spanish bank CaixaBank SA for €600 million. For the Spanish bank, the deal will provide a once-off gain of €524 million and help bolster its capital reserves. It will transfer reserve assets that back up the policy payments to Berkshire who will be in charge of paying any insurance claims that arise.

According to a report by semiaccurate.com, AMD (NYSE:AMD) is likely to launch solid state drives under its Radeon brand name. AMD will probably outsource the production to an ODM partner in order to bring the drives to market as quickly as possible at a competitive cost. “So, it’s a pure marketing decision that will hopefully bring in money,” says the article.

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