Buffett Starts European Shopping Spree

Warren Buffett, the world's richest person, is today kicking off a four-day, four-city corporate shopping spree in Frankfurt, with family-owned European firms in his sights.

The 77-year-old, armed with a war-chest of cash worth at least $35bn (£17.9bn) in his Berkshire Hathaway investment firm, is paying host to some 100 invited German family-firm leaders at the renowned Union International Club in Germany's financial capital.

He later travels this week to Lausanne, home of several Swiss pharmaceutical firms, and Madrid before ending his tour in Milan, Italy's industrial and commercial capital and also home to many family-run businesses.

Among today's German guests is reportedly Stefan Quandt, whose family owns around 48% of BMW - though there is no suggestion in advance of the event, which includes a two-hour Q&A session, that Buffett could or would take a stake in the world's leading premium car company. He is also meeting executives of private bank Sal Oppenheim.

A savage critic of Bush administration policy towards the weak dollar, Buffett told Berkshire's annual meeting two weeks ago he wants a stronger presence on the European radar screen. "If your business is important then we're the right address," he said. "We are nowhere near as prominent in Europe as we should be." He has pointed to acquisitions in the $5bn to $20bn range.

Family-owned firms, often providing the backbone of medium-sized enterprise - Mittelstand in German - in domestic economies, have suffered growing problems of succession as younger members opt for careers outside the business or fritter their wealth away.

In Germany, Buffett and his advisers are said to have eyed Bonn-based sweet maker Haribo and print-machinery firm Heidelberger Druck. They are not just interested in the traditional machine-tool sector, which has enjoyed soaring exports, it is said.

Swiss reports suggest that Buffett, who has built up stakes in Coca-Cola and Procter & Gamble as well as AmEx, could be eyeing Swatch, Schindler and Sonova - and could take more of SwissRe, the reinsurer. The collapse of the Spanish construction boom could also offer rich pickings.

The Sage of Omaha's trip has been organized by Eitan Wertheimer of Israeli firm Iscar and Angelo Moratti of Italy's energy firm Saras - both companies acquired by Berkshire.