Buffett's Berkshire discloses 2.8 pct stake in Goldman Sachs

Wed Oct 9, 2013 3:22am IST

Berkshire Hathaway CEO Warren Buffett waits in his car on arrival at the annual Allen and Co. conference in Sun Valley, Idaho July 9, 2013. REUTERS/Rick Wilking/Files

Berkshire Hathaway CEO Warren Buffett waits in his car on arrival at the annual Allen and Co. conference in Sun Valley, Idaho July 9, 2013.

Credit: Reuters/Rick Wilking/Files

Related Topics

Stocks

   

REUTERS - Warren Buffett's Berkshire Hathaway Inc (BRKa.N) disclosed a 2.8 percent passive stake in Goldman Sachs Group Inc (GS.N) as it converted warrants acquired during the financial crisis.

Buffett received the warrants five years ago when his investment in Goldman was seen as a vote of confidence in the bank, which was reeling from turmoil in the credit market.

Under Buffett's deal with Goldman, Berkshire had the right to buy about 43.5 million Goldman shares - or a roughly 9 percent stake then - at an exercise price of $115 per share.

Goldman had amended the deal in March, which gave Berkshire a much smaller stake but did not require it to commit any capital to exercise the warrants.

Reuters reported last week that Berkshire would convert the warrants into shares equal in value to the difference between the warrants' exercise price and the average closing price for Goldman shares in the 10 trading days up to October 1.

The billionaire investor disclosed the stake of 13.06 million shares as of October 1 in a regulatory filing late on Tuesday. (r.reuters.com/vyv63v)

The stake, valued at about $2 billion based on Goldman's Tuesday close of $153.05, makes Berkshire the sixth-largest external investor in the bank, according to Thomson Reuters data.

(Reporting by Aman Shah in Bangalore)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Popularity Poll

REUTERS SHOWCASE

Record Highs

Record Highs

Nifty touches record high; software stocks gain.  Full Article 

New Adviser

New Adviser

Arvind Subramanian likely to be chief econ adviser.  Full Article 

Pricing Mechanism

Pricing Mechanism

Govt sets up a four-member panel to re-examine gas pricing.  Full Article 

Royalty Rates

Royalty Rates

India to hike iron ore royalty, miners may struggle to pass on extra cost.  Full Article 

Commodities

Commodities

Gold near two-month low; set for weekly drop on interest rate fears  Full Article 

Reuters Exclusive

Reuters Exclusive

Apple iPhone 6 screen snag leaves supply chain scrambling   Full Article 

Helping Regional Mills

Helping Regional Mills

Govt raises sugar import duty to 25 pct from 15 pct.  Full Article 

Curbing Risks

Curbing Risks

RBI to lower ceiling on bank loans to a single corporate group.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage