Arab Today, arab today buffett to turn rescue aid into big goldman stake
Last Updated : GMT 01:44:06
Arab Today, arab today
Arab Today, arab today

Buffett to turn rescue aid into big Goldman stake

Arab Today, arab today

Arab Today, arab today Buffett to turn rescue aid into big Goldman stake

New York - AFP

Warren Buffett's Berkshire Hathaway will become one of Goldman Sachs' largest stockholders in the latest reward for its emergency aid to the bank at the height of the 2008 financial crisis. Berkshire could receive more than nine million shares of the storied investment bank under an amended warrants agreement announced by Goldman on Tuesday. The deal will make Berkshire one of Goldman's top 10 shareholders, and the Buffett-led investment group won't have to pay anything for the shares. "We are pleased the Berkshire Hathaway intends to remain a long-term investor in Goldman Sachs," said Goldman chief executive Lloyd Blankfein in a statement. The announcement said the two sides had modified their September 2008 deal which saw Berkshire helping Goldman get through the financial crisis. Under the original agreement, Berkshire invested $5 billion in preferred Goldman shares that carried a dividend of 10 percent. Goldman also granted Berkshire warrants to purchase $5 billion of common stock at $115 per share. In March 2011, Goldman bought back the preferred shares for $5.5 billion, giving Berkshire a return of $500 million on top of the dividends received, but leaving it with the warrants, which expire on October 1. The warrants would have granted Berkshire 43.5 million Goldman shares, but cost it $5 billion in cash -- though, with Goldman shares trading over $145, Berkshire could have registered an immediate large paper gain. In the amended agreement -- aimed at avoiding the massive dilution of shares Goldman of the original deal -- Goldman will issue to Berkshire a number of shares based on the profit Berkshire could have reaped from the difference of the exercise price and the average market value of the shares over the 10 days to the exercise date. Calculated based on today's price, that would give Berkshire 9.26 million shares in Goldman, a no-cost stake worth roughly $1.35 billion. "We intend to hold a significant investment in Goldman Sachs, a firm that I did my first transaction with more than 50 years ago," Buffett said in the release. It suggested Buffett plans to hold the shares, rather than cashing out. In midday trade Goldman shares were off 0.1 percent at $145.96, while Berkshire's more widely traded B shares gained 0.9 percent to $103.33.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today buffett to turn rescue aid into big goldman stake Arab Today, arab today buffett to turn rescue aid into big goldman stake

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today buffett to turn rescue aid into big goldman stake Arab Today, arab today buffett to turn rescue aid into big goldman stake

 



Arab Today, arab today
Arab Today, arab today Arab tradition glitters in Colombia

GMT 12:59 2017 Thursday ,19 October

Arab tradition glitters in Colombia
Arab Today, arab today Second US judge orders freeze

GMT 08:04 2017 Thursday ,19 October

Second US judge orders freeze
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Silent Republicans have their reasons

GMT 16:55 2017 Thursday ,19 October

Silent Republicans have their reasons
Arab Today, arab today Hiring not part of Alibaba pledge

GMT 11:26 2017 Wednesday ,18 October

Hiring not part of Alibaba pledge
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Sidem reveals plan to improve education

GMT 15:52 2017 Friday ,06 October

Sidem reveals plan to improve education
Arab Today, arab today Ex-French minister Dati wants tough action

GMT 10:54 2017 Thursday ,19 October

Ex-French minister Dati wants tough action
Arab Today, arab today Massacre fears spark race

GMT 19:09 2017 Thursday ,19 October

Massacre fears spark race
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Mercedes says recalls 400,000 UK cars

GMT 06:56 2017 Tuesday ,17 October

Mercedes says recalls 400,000 UK cars
Arab Today, arab today Britain's Vauxhall to cut 400 jobs

GMT 10:53 2017 Sunday ,15 October

Britain's Vauxhall to cut 400 jobs
Arab Today, arab today Hussein Fahmy happy for honoring in festival

GMT 07:47 2017 Tuesday ,17 October

Hussein Fahmy happy for honoring in festival
Arab Today, arab today Climate-disrupting volcanoes helped topple

GMT 16:00 2017 Wednesday ,18 October

Climate-disrupting volcanoes helped topple

GMT 09:31 2017 Monday ,16 October

Dalal Abdel Aziz happy for “Seventh Neighbor”

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman

GMT 18:29 2017 Sunday ,03 September

Designer produced new set of ornaments

GMT 05:11 2017 Tuesday ,17 October

Three killed, 360,000 without power

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 23:42 2017 Monday ,16 October

Better Marriages Make

GMT 06:52 2017 Monday ,16 October

Airbus CEO says won't cling to job

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 20:46 2017 Thursday ,19 October

Qualcomm files lawsuits in China to ban iPhones

GMT 19:29 2017 Tuesday ,29 August

Yomna: decoration leaved positive effects
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday