Friday, March 05, 2004
Warren Buffett enters India
Indian disinvestment minister Arun Shourie was worried that the Oil and Natural Gas Corporation (ONGC) public offer (10% of the govt's stake and expected to raise $2 billion) would not do well thanks to the activities of a bear cartel in the Indian market. Turns out he needn't have worried. The issue (which ends on March 13) has already been oversubscribed 2.2 times. But now comes news that Warren Buffet has invested $1 billion in the ONGC issue, making it Berkshire Hathway's first significant investment in India. Though it has not been confirmed, Buffet is said to have bought at the lower end of the price band at about $15 or thereabouts. Buffet is clearly beginning to show interest in emerging markets following up his acquisition of 13% or PetroChina with this investment in ONGC.
