Wednesday, September 24, 2008
Goldman Sachs announced that it has reached an agreement to sell $5 billion of perpetual preferred stock to Berkshire Hathaway, Inc. in a private offering. The preferred stock has a dividend of 10 percent and is callable at any time at a 10 percent premium. In conjunction with this offering, Berkshire Hathaway will also receive warrants to purchase $5 billion of common stock with a strike price of $115 per share, which are exercisable at any time for a five year term. In addition, Goldman Sachs is raising at least $2.5 billion in common equity in a public offering.
Who needs a federal bailout when there's Warren Buffett?