Global e-Finance: David Sokol leaves Berkshire after investing in a takeover target.

March 31, 2011 - PRLog -- Global e-Finance has been informed that David Sokol, once touted to succeed Warren Buffet as the head of Berkshire Hathaway Inc., has resigned under a cloud after it was disclosed that he purchased shares in a company targeted for takeover.

The 54 year old Sokol bought around 96,000 Lubrizol Corp. shares in January this year before recommending that the company be targeted for takeover, according to a statement from Berkshire’s chairman and CEO, Warren Buffet. Sokol had entered into confidential negotiations with Lubrizol the month before. In mid-March Berkshire agreed to purchase Lubrizol for $9 billion.

Buffet told Global e-Finance sources that he had relied on Sokol as a manager and a dealmaker for over a decade. The 80 year old Buffet, who has been planning his succession, said they are currently awaiting approval from regulators and shareholders for the deal.

One source known to Global e-Finance said that the U.S. Securities and Exchange Commission is reviewing Buffets statement and discussing the matter internally.

“The SEC is going look at that deal to check for insider buying and selling, so if there’s an issue the time to clean it up is now,” Daniel Genter, president of RNC Genter Capital Management in Los Angeles said recently.

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