Home Capital Group is standing behind Warren Buffett's Berkshire Hathaway bid to increase its stake in the company after leading proxy advisory firm Institutional Shareholder Services advised investors to vote against the deal. Berkshire also agreed to invest a further $246.7 million, at $10.30 per share, which would increase its indirect stake in Home Capital to 38.4 per cent. Last week, another proxy adviser firm, Glass Lewis endorsed the proposed Berkshire second tranche. "On a cost-benefit analysis, the proposed Berkshire second tranche appears to offer nominal additional reputational and strategic benefits to those already established under the Berkshire first tranche, while dilution cost of the discounted second tranche is substantial," ISS said in a statement. "On balance, a vote against the proposed second tranche of the Berkshire equity investment is warranted."

Source: CBC News August 30, 2017 19:00 UTC