Of course, they have already begun rejecting his offer but they won’t be able to for long. Either through formal bankruptcy or these type of asset sales, Ambac, FGIC and MBIA don’t have enough funds to meet their insurance obligations. Buffet’s offer, while salting their already damaged egos, is only being rejected because they need a bail-out to remain ongoing businesses.
As Barry Ritholtz (http://bigpicture.typepad.com/) noted on CNBC 2/12, these companies are holding high quality Municipals that they insure as a hostage for the benefit of their toxic Mortgage paper.
If Mr. Buffet, or anyone else, can buy the good paper, these companies will cease to be going concerns as the write downs will continue in earnest. Telling him no just delays the inevitable.