Cable Operators

Uptick for Comcast on Buffett Buy

8/18/2004 5:29 AM Eastern

Comcast Corp. shares got a slight lift Tuesday after it was disclosed that legendary investor Warren Buffett purchased 5 million shares of the Philadelphia-based MSO for $147.9 million through one of his insurance holdings.

Buffett, chairman of Berkshire Hathaway Inc., bought the shares through GEICO, the auto-insurance carrier Berkshire controls.

Neither Comcast nor Berkshire listed the purchase in their recent regulatory filings, but GEICO revealed the purchase in a state regulatory document, according to Bloomberg News.

GEICO purchased the shares April 30, two days after Comcast dropped its unsolicited bid for The Walt Disney Co.

The total purchase price assumes that GEICO purchased the Comcast shares for about $29.59 each. The stock closed at $29.12 that day.

Comcast stock had been hit hard after it made its initial bid for Disney in February -- the stock fell from $33.93 each Feb. 10, the day before the initial bid, to as low as $28 in March.

Comcast shares rose about 2% Tuesday, closing at $27.42, up 56 cents.

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