Buffett's Interest in Conseco Boosts Life Company's Value.Following billionaire Warren Buffett's reported interest in Conseco Inc., the beleaguered be·lea·guer tr.v. be·lea·guered, be·lea·guer·ing, be·lea·guers 1. To harass; beset: We are beleaguered by problems. 2. To surround with troops; besiege. company's stock and bonds have increased in price, a spokesman said. "It's always good to have Warren Buffett Warren Buffett Known as "the Oracle of Omaha," Buffett is Chairman of Berkshire Hathaway and arguably the greatest investor of all time. His wealth fluctuates with the performance of the market, but for the last few years he has been reported to be worth over $30 billion, making be your vote of confidence," said Mark Lubbers, a spokesman for Conseco. The added interest in Conseco's bonds have raised the price so much that "you can't really call them junk bonds junk bond, a bond that involves greater than usual risk as an investment and pays a relatively high rate of interest, typically issued by a company lacking an established earnings history or having a questionable credit history. anymore," Lubbers said. Since Conseco Chairman and Chief Executive Officer Gary Wendt spoke at a shareholders meeting on Dec. 19, the stock price has increased by about 30%, Lubbers said. The stock and the company's bonds also have continued to increase in price, following a report in the Wall Street Journal that Buffett's Berkshire Hathaway Berkshire Hathaway (NYSE: BRKA, NYSE: BRKB) is a conglomerate holding company headquartered in Omaha, Nebraska, U.S., that oversees and manages a number of subsidiary companies. had bought several hundred million dollars' worth of Conseco's debt. Conseco's 9% notes due to mature October 2006 were recently offered at 73 cents on the dollar, with a yield to maturity of 13%, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. a Reuters report. "Berkshire Hathaway started out--and still is at its core--an insurance company," Lubbers said. "Buffett understands both the industry and [Conseco's] value." Conseco's stock rose 14% to $13.1875 on Dec. 29, the day Buffett's move was published. That's the highest the stock has traded since March. During his presentation for Conseco investors, Wendt said the company is "now 85% of the way toward our goal," of paying down $2 billion in debt by the end of 2001. |
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