Tuesday, March 26, 2013

Look Who Goldmans’ Biggest Shareholder Will Be





Yes, dear reader.  According to Bloomberg Warren Buffett’s Berkshire Hathaway gave up an opportunity to become the biggest shareholder in Goldman Sachs Group Inc. (GS), choosing to take stock instead of cash profits he might make on a 2008 grant.

Berkshire held warrants that allowed it to purchase 43.5 million Goldman Sachs common shares for $115 apiece until Oct. 1. Under revised terms announced by the companies today, Berkshire will get stock equal to the difference between the average closing price during the 10 trading days preceding Oct. 1 and the exercise price, multiplied by 43.5 million.

The new deal eliminates some of the risk for Omaha, Nebraska-based Berkshire, which would have had to spend about $5 billion to exercise the warrants and then eventually sell the shares to cement a profit…

Read all about it at http://www.bloomberg.com/news/2013-03-26/berkshire-to-get-goldman-stock-tied-to-warrants-from-2008-deal.html

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