Buffett's Target Company Was Pressed by SEC on Credit Suisse Feeby
Credit Suisse to receive $32 million fee if PCP deal completed
Precision Castparts CEO Donegan may receive $93 million
Precision Castparts Corp., the company that agreed to be acquired by Warren Buffett’s Berkshire Hathaway Inc., was pressed by the U.S. Securities and Exchange Commission to disclose banking fees on the deal.
Credit Suisse Group AG will receive a transaction payment of $32 million if the purchase is completed, Portland, Oregon-based Precision said in an Oct. 1 filing. That number wasn’t included in a Sept. 4 document that referred to the Zurich-based bank in multiple passages, including on the third page, an omission that prompted the SEC to ask for more information in a revised filing.
“Please disclose here and on page 38 the amount that Credit Suisse will be paid in connection with the merger,” the regulator said in a Sept. 28 letter. The SEC also asked Precision to aggregate how much compensation executives may receive as part of the transaction.
According to the October filing, Precision Chief Executive Officer Mark Donegan could receive a $93 million package, components of which were reported individually in the earlier document. Donegan agreed in August to sell Precision, the maker of equipment for the aerospace and energy industries, to Berkshire in a transaction valued at more than $30 billion.
The SEC told Precision in an Oct. 13 letter, made public on Friday, that it had finished its review of the company’s filing. Such correspondence is typically released weeks after an evaluation is completed.