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Buffett set to buy Dexia’s bond insurance unit

The insurance businesses of billionaire investors Warren Buffett and Wilbur Ross are close to buying all or part of Financial Security Assurance, the US bond insurance unit of Dexia bank.

Belgian media sources reported last week that the transaction between insurers Berkshire Hathaway Assurance and Assured Guaranty and French-Belgian financial services group Dexia is in its final stages.

Reacting to the “rumours” that it would consider selling all or part of Financial Security Assurance, Dexia said in a statement last week it is “exploring the options and means” to reduce the “specific risk” associated with the unit.

Dexia also reported that any decisions “will be the subject of a specific communication in due time”.

The troubled European bank received a €6.4 billion ($12.4 billion) bailout from the French, Belgian and Luxembourg governments in September.