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

REUTERS SHOWCASE

Record Highs

Record Highs

BSE Sensex, Nifty hit record highs, insurers gain  Full Article 

Global Growth

Global Growth

IMF cuts outlook, warns of stagnation risk in rich nations  Full Article 

Monsoon Revives

Monsoon Revives

Monsoon revival keeps rain above average   Full Article 

Wipro Results

Wipro Results

Firm sees strong sales growth, eyes Europe deals   Full Article 

Scourge of Inflation

Scourge of Inflation

Markets' post-election enthusiasm lost on consumers  Full Article 

Just Not Enough

Just Not Enough

Amazon's smartphone fails to kindle a "Fire" among reviewers.  Full Article 

Rising Market Value

Rising Market Value

Facebook goes express to mega-cap status  Full Article 

Mining Roadblock

Mining Roadblock

Coal India's plans for 20 mines hit by land, environment delays  Full Article 

Power Jolt

Power Jolt

UAE's TAQA pulls out of India power plant deal with Jaiprakash  Full Article 

Reuters India Mobile

Reuters India Mobile

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