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Warren Buffett Suffers Rare Rejection


Home Capital Group Inc.'s (HCG) shareholders have rejected Warren Buffett's attempt to increase Berkshire Hathaway's ownership stake to over 38% in the mortgage lender.

Shares representing more than 88% of the shares that voted at the special shareholders meeting voted against the additional equity investment.

"We respect the decision our shareholders made today. This decision is a clear message that the majority of our shareholders believe that Home Capital's improved deposit inflows and liquidity position diminish the need for additional capital. We are pleased to still have Berkshire as our largest shareholder," said Brenda Eprile, Chair of the Board.

Berkshire was seeking to buy a second tranche of shares at deeply discounted price of $247-million, while shares are worth $337 million, based on Monday's closing price.

by RTTNews Staff Writer

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