Star investor Warren Buffett is famous for sniffing out a good deal. It has made him very rich. And just a few days ago, he surprised market observers by buying 8 million shares in the American seed manufacturer Monsanto.
That’s just a 1.8 percent stake. But the decision got attention. Mr. Buffett did not publicly explain his move. But it is clear he thinks Bayer’s $66 billion takeover attempt will gain approval from the U.S.’ Federal Trade Commission and the Department of Justice, the two authorities tasked with enforcing antitrust law in the United States.
If the deal goes through, Mr. Buffett stands to make a tidy profit: He paid around $830 million for the shares, which Bayer would buy from him for $1.02 billion.