David Sokol Did Receive Phone Call Saying Lubrizol Was Interested In Berkshire Deal (BRK.A, BRK.B, BRK-A, BRK-B, LZ)

CNBC reported today that, according to Lubrizol LZ, David Sokol did receive a phone call confirming that Lubrizol was interested in moving forward with the Berkshire Hathaway BRK BRK BRK BRK deal. David Sokol was an employee of Berkshire Hathaway and brought up the possibility of acquiring Lubrizol to Warren Buffett during his employment. This action was controversial due to Sokol's long position in Lubrizol stock at the time when he brought up the possibility to Warren Buffett. Sokol subsequently profited by the rise in Lubrizol's stock price after Berkshire Hathaway announced its interest in acquiring Lubrizol. Sokol allegedly made millions of dollars in profit on his trade in Lubrizol. At the time of Buffett's announcement that Berkshire Hathaway was interested in acquiring Lubrizol, Sokol had a large position in Lubrizol stock and still did not sell even though a takeover looked ripe within the near future. Previously, Warren Buffett said that Sokol did not know what Lubrizol's interest was in the deal at the time when Sokol held Lubrizol stock in his personal account, according to Buffett's shareholder letter. CNBC is reporting today, however that Sokol did in fact receive a phone call from Lubrizol confirming the company's interest in the Berkshire deal. David Sokol told Buffett, CEO of Berkshire Hathaway, that he had purchased Lubrizol shares prior to his discussion of the company with Buffett. On CNBC, he said that he "had no control over deal" regarding if or when Buffett might decide to express an interest in acquiring Lubrizol. Defending his disclosure of his position in Lubrizol stock, Sokol said that "it would have been inappropriate not to suggest deal to Buffett," even though Sokol already owned shares of Lubrizol and could benefit from an increase in the stock price. Sokol claims that he did not have access to insider information during his trade of Lubrizol. Prior to this scandal, Sokol was rumored to be a possible successor to Warrenn Buffett as CEO of Berkshire Hathaway. Sokol said that his resignation from Berkshire Hathaway occurred at an appropriate time for he and his family. He said that being the CEO of Berkshire Hathaway was not something to which he aspired.