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

Global Trade Deal

Global Trade Deal

Rural votes, old traumas drive India's WTO brinkmanship.`  Full Article 

E-Commerce Funding

E-Commerce Funding

E-tailer Flipkart raises $1 billion in funding.  Full Article 

Adani Project

Adani Project

Australia approves Adani's $16 bln Carmichael coal project  Full Article 

New Frontiers

New Frontiers

EXCLUSIVE - Goldman moves executive to new role building ETFs.  Full Article 

India-U.S. Talks

India-U.S. Talks

Kerry to woo Modi's India, but quick progress unlikely  Full Article 

Argentina Debt Default

Argentina Debt Default

Insight - Jaded Argentines brace for looming debt default   Full Article 

Anti-trust Probe

Anti-trust Probe

Microsoft targeted in apparent Chinese anti-trust probe  Full Article 

Gaza Conflict

Gaza Conflict

Israel strikes house of Hamas Gaza leader, digs in for long fight.  Full Article 

Reuters India Mobile

Reuters India Mobile

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