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

GROUP OF 20

REUTERS SHOWCASE

Modi Speaks

Modi Speaks

PM Modi says al Qaeda will fail in India - CNN.  Full Article 

Alibaba Listing

Alibaba Listing

Alibaba surges on massive demand in trading debut  Full Article 

Importing Rice

Importing Rice

Top rice exporter India importing over 100,000 T on temporary supply squeeze.  Full Article 

GSK Fined

GSK Fined

China hands drugmaker GSK record $489 mln fine, sentences executives.  Full Article 

HMT in Demand

HMT in Demand

Fans rush to HMT as watchmaker marks time.  Full Article 

Apple Not Cool?

Apple Not Cool?

Some consumers say Apple is losing its "cool" factor  Full Article 

Asian Games 2014

Asian Games 2014

Full coverage of the 17th Asian Games as Incheon.  Full Coverage 

Reuters India Mobile

Reuters India Mobile

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