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Swiss Re plans to buy back Buffett's bonds

ZURICH
Fri Mar 13, 2009 5:53am EDT

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ZURICH (Reuters) - Troubled reinsurer Swiss Re (RUKN.VX) should be able to generate enough funds to buy back convertible bonds issued to Warren Buffett's Berkshire Hathaway (BRKa.N), said Chairman Peter Forstmoser on Friday.

Another option would be to raise the funds needed by a capital increase, said Forstmoser, adding this would make the Buffett deal a form of interim financing.

"The price to pay for this may be higher but it is geared toward the market requirements today," Forstmoser, who is due to hand over the chairmanship to vice chairman Walter Kielholz, said in the text of a speech to shareholders at the company's annual meeting.

The world's second biggest reinsurer turned to Buffett after a hefty loss and large writedowns on illiquid assets.

Kielholz, a former Swiss Re chief executive, relinquished his role as chairman of Credit Suisse (CSGN.VX) to become chairman of Swiss Re, the companies said on Monday.

(Reporting by Jason Rhodes; Editing by Greg Mahlich)


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