INSUBCONTINENT EXCLUSIVE:
Billionaire Warren Buffett had proposed to
invest $3 billion in Uber Technologies Inc earlier this year, but the talks failed following disagreements over the deal's terms, Bloomberg
reported on Wednesday, citing unidentified people familiar with the matter.Buffett's Berkshire Hathaway Inc would have provided a
convertible loan to Uber that would have protected Buffett's investment should the Silicon Valley ride-hailing company hit financial crisis,
the report said.Uber Chief Executive Officer Dara Khosrowshahi proposed decreasing the size of the deal to $2 billion, giving Buffett a
smaller share of the company
The deal fell after the two sides could not agree on terms, Bloomberg reported, citing a source.Buffett told CNBC that "some of the reported
details are not correct" but confirmed that Berkshire did have talks with Uber.A representative for Buffett did not immediately respond to a
An Uber spokesman declined to comment.Buffett, who had long shunned the technology sector, has become a top shareholder of Apple Inc, and
expressed regret about not investing in Alphabet Inc's Google and Amazon.com Inc before they became huge.Berkshire has $108.6 billion in
cash and equivalents as of the end of March that it is eager to invest.Berkshire said much of the $14.8 billion it invested in equities
during the first quarter went to Apple, and said it owned 239.6 million shares worth more than $40 billion.That said, Buffett may view Apple
and Uber less as technology companies than strong brands with loyal customers
Berkshire has more than 90 operating units including the BNSF railroad, Geico auto insurance, Dairy Queen ice cream, Fruit of the Loom
underwear, See's Candies and a variety of industrial, utility and chemical operations.Larger stock investments are normally made by Buffett,
but he has handed over more responsibility to his investment deputies Todd Combs and Ted Weschler in recent years.Khosrowshahi has since his
August appointment been trying to improve the image of Uber, which has been rocked by management turmoil and tarnished by revelations about
an alleged sexist workplace culture tolerant of chauvinism
The Uber board of directors has committed to a 2019 initial public offering, and Khosrowshahi has not strayed from that timeline
An investment by Buffett would likely have been viewed as a stamp of approval
In the last decade, Buffett has invested billions of Berkshire dollars to support companies seeking a pick-me-up, including investments in
Goldman Sachs Group Inc, General Electric Co and Bank of America Corp during or in the aftermath of the global financial crisis.Many of
these have carried favourable terms for Berkshire, giving it a reputation as a lender of last resort to companies in need.In February, Uber
was valued at $72 billion.© Thomson Reuters 2018
