May 4 (Bloomberg) -- Billionaire Warren Buffett, whose Berkshire Hathaway Inc. is hunting for takeovers outside the U.S., said a subsidiary is ``probably close'' to a U.K. purchase.

Buffett, speaking at a press conference today in Omaha, Nebraska, didn't name the target, describing it only as a ``mid- size'' company. He added that Berkshire will look at insurance units being sold by Royal Bank of Scotland Group Plc, the U.K. lender reeling from asset writedowns.

Buffett, Berkshire's chairman, embarks on a European trip this month to scout for acquisitions. With about $35 billion in cash to help pay for a purchase, Buffett has complained he can't find anything big enough to have an impact on Berkshire, whose market value tops $206 billion. He has been investing in China, Israel and the U.K. to spur profit growth after saying that worthy U.S. investments are scarce.

The U.K. rule that requires disclosure of holdings once a stake reaches 3 percent ``messes up'' his investment strategy, Buffett said.

Buffett said he'd buy Swedish companies at the right price, adding that high costs thwart his desire to buy an entire company in Japan.

Asian currencies will rise in value against the dollar and the euro, which may influence decisions about acquisitions in China and Taiwan, he said. Currency controls may have curtailed the appreciation, Buffett said, adding, ``you can't hold back the tide forever.'' Berkshire missed some opportunities to invest in India, he said.

``Scapegoating'' China for economic ills in other nations is a mistake, Buffett said.

``Getting paranoid about the Chinese is crazy,'' Buffett said, adding he expects more of it in the future.

To contact the reporters on this story: Erik Holm in Omaha, Nebraska at eholm2@bloomberg.net; Josh P. Hamilton in Omaha at jphamilton@bloomberg.net

Last Updated: May 4, 2008 17:43 EDT