SOURCE: Form4Oracle
|
March 09, 2008 12:00 ET
Ambac Insiders Respond to Warren Buffett
BOSTON, MA--(Marketwire - March 9, 2008) - Billionaire investor Warren Buffett has recently
offered to assume risk in the $800 billion of municipal bonds guaranteed by
three troubled rivals, MBIA, Ambac and FGIC. The deal is not exactly
charitable, as Mr. Buffett's newly formed bond insurance company would, for
$5 billion in capital, capture a third of the municipal-insurance market.
As for the insurers, the deal would steal the best part of their
businesses, leaving them to deal with their heavy exposure to subprime
assets.
Not surprisingly, Ambac rejected the offer leaving everyone wondering what
steps they would take to maintain their crucial AAA rating. It became
clear this Friday as the New York-based bond insurer's underwriters priced
a sale of 171.1 million shares of the company's stock at $6.75 per share.
Additionally, Ambac's insiders have clearly indicated that they are willing
to put their money where their mouths are and significantly increased their
holdings by purchasing at the offering price. Eight of the company insiders
have purchased shares in their own company, including:
-- Michael A. Callen, Chairman, President and CEO, purchased
$168,750 increasing his holdings by 104%
-- Henry D.G. Wallace, Director, purchased $67,000 increasing
his holdings by 117%
-- Thomas C. Theobald, Director, purchased $135,000 increasing
his holdings by 87%
Shares of Ambac moved +2.08 (+28.03%) on Friday.
For more information, please visit:
http://www.form4oracle.com/company?cik=0000874501&ticker=ABK
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