GEICO buys 3.3% stake in Reebok in 2nd quarter

September 02, 1993|By Bloomberg Business News

Reebok International Ltd. said GEICO Corp. purchased 3.3 percent of its common shares in the second quarter.

GEICO, the nation's seventh-largest automobile insurer, bought 2.9 million shares of the Stoughton, Mass.-based sneaker maker between April 1 and June 30, said Michael Seely, Reebok's spokesman.

Shares of Reebok traded at an average price of $34.375 in the quarter, indicating that GEICO, based in Chevy Chase, paid about $100 million for the stock.

Officials at GEICO, which is 48 percent-owned by investor Warren Buffett's Berkshire Hathaway Inc., were unavailable for comment.

GEICO isn't Reebok's biggest shareholder. Lazard Freres & Co. and Loomis, Sayles & Co. each own about 4 million shares of Reebok.

Reebok is the second-largest producer of athletic shoes behind Nike Inc.

Second-quarter earnings fell 10.4 percent to $41 million, or 46 cents a share, from $45.8 million, or 49 cents, in the prior year. For the first six months, Reebok said net income rose to $108.8 million, or $1.21 a share, from $108.1 million, or $1.16.

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