November 18, 2008 / 7:26 PM / in 9 years

Berkshire shares drop on report of surging CDS levels

NEW YORK, Nov 18 (Reuters) - Berkshire Hathaway Inc. (BRKa.N) (BRKb.N) shares fell 4 percent after a media report said the cost of protecting its debt against default has almost tripled in two months.

A report on Bloomberg said the cost of protecting Berkshire’s debt against default using credit default swaps has risen to 388 basis points, or $388,000 a year to protect $10 million for five years, from 140 basis points two months ago. Higher default swap prices often signal investor concern about a company.

Berkshire’s “A” shares fell 4 percent to $91,700.

Reporting by Dan Wilchins; Editing by Bernard Orr

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