Goldman Sachs Buffett
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Goldman Sachs Buffett
Buffett to Invest $5 Billion In Goldman Sachs Group
Topics:China | Wall Street | Banking | Stock Market
Sectors:Banks
Companies:Bank of America Corp | Wachovia Corp | Goldman Sachs Group Inc | Morgan StanleyBy Reuters | 23 Sep 2008 | 06:11 PM ET Font size: Goldman Sachs Group said it will receive a $5 billion investment from Warren Buffett's Berkshire Hathaway, a vote of confidence for the Wall Street bank from perhaps the world's best-known investor.
CNBC.com
Warren Buffett
--------------------------------------------------------------------------------
Berkshire will buy $5 billion of perpetual preferred stock that carries a 10 percent dividend. It also will receive warrants to buy $5 billion of common stock at $115 per share, exercisable within five years.
Goldman also said it plans to sell at least $2.5 billion of common stock.
It announced the offerings after earlier this week announcing it would become a bank holding company, enabling it to accept deposits, and killing the investment banking model that has dominated Wall Street for decades.
"This is a marriage of two incredibly intelligent, attractive partners," said Michael Holland, a money manager at Holland & Co in New York. "Buffett is saying about the top management of Goldman Sachs that they're distinct and different from their competitors—and it's a vote of confidence which is gold plated. You don't get better than this."
Shares of Goldman [GS 125.05 4.27 (+3.54%) ] rose $10.65, or 8.5 percent, to $135.70 in after-hours trading following the announcement. They rose $4.27, or 3.5 percent, to $125.05 in regular trading.
"Goldman Sachs is an exceptional institution," Buffett said in a statement. "It has an unrivaled global franchise, a proven and deep management team and the intellectual and financial capital to continue its track record of outperformance."
Buffett was not immediately available for further comment, according to Debbie Bosanek, who works in his Omaha, Nebraska office.
RELATED LINKS
Current DateTime: 03:26:26 23 Sep 2008
LinksList Documentid: 26859230
Warren Buffett Tells CNBC He Wholeheartedly Supports Bailout Plan
CNBC: Warren Buffett No Longer In Talks With AIG
Defending Warren Buffett: "Getting Better With Age"
Lloyd Blankfein, Goldman's chief executive, in a statement said Buffett's investment is "a strong validation of our client franchise and future prospects. This investment will further bolster our strong capitalization and liquidity position."
The investment is Buffett's second major purchase in less than a week. Thursday, his MidAmerican Energy Holdings affiliate agreed to buy power supplier Constellation Energy Group for $4.7 billion.
Constellation took that bid over a higher offer led by French energy giant Electricite de France SA.
Isto deve trazer uma boa dose de confiança ao mercado,com os futuros positivos na casa de 1,5%...
o que acham?
Topics:China | Wall Street | Banking | Stock Market
Sectors:Banks
Companies:Bank of America Corp | Wachovia Corp | Goldman Sachs Group Inc | Morgan StanleyBy Reuters | 23 Sep 2008 | 06:11 PM ET Font size: Goldman Sachs Group said it will receive a $5 billion investment from Warren Buffett's Berkshire Hathaway, a vote of confidence for the Wall Street bank from perhaps the world's best-known investor.
CNBC.com
Warren Buffett
--------------------------------------------------------------------------------
Berkshire will buy $5 billion of perpetual preferred stock that carries a 10 percent dividend. It also will receive warrants to buy $5 billion of common stock at $115 per share, exercisable within five years.
Goldman also said it plans to sell at least $2.5 billion of common stock.
It announced the offerings after earlier this week announcing it would become a bank holding company, enabling it to accept deposits, and killing the investment banking model that has dominated Wall Street for decades.
"This is a marriage of two incredibly intelligent, attractive partners," said Michael Holland, a money manager at Holland & Co in New York. "Buffett is saying about the top management of Goldman Sachs that they're distinct and different from their competitors—and it's a vote of confidence which is gold plated. You don't get better than this."
Shares of Goldman [GS 125.05 4.27 (+3.54%) ] rose $10.65, or 8.5 percent, to $135.70 in after-hours trading following the announcement. They rose $4.27, or 3.5 percent, to $125.05 in regular trading.
"Goldman Sachs is an exceptional institution," Buffett said in a statement. "It has an unrivaled global franchise, a proven and deep management team and the intellectual and financial capital to continue its track record of outperformance."
Buffett was not immediately available for further comment, according to Debbie Bosanek, who works in his Omaha, Nebraska office.
RELATED LINKS
Current DateTime: 03:26:26 23 Sep 2008
LinksList Documentid: 26859230
Warren Buffett Tells CNBC He Wholeheartedly Supports Bailout Plan
CNBC: Warren Buffett No Longer In Talks With AIG
Defending Warren Buffett: "Getting Better With Age"
Lloyd Blankfein, Goldman's chief executive, in a statement said Buffett's investment is "a strong validation of our client franchise and future prospects. This investment will further bolster our strong capitalization and liquidity position."
The investment is Buffett's second major purchase in less than a week. Thursday, his MidAmerican Energy Holdings affiliate agreed to buy power supplier Constellation Energy Group for $4.7 billion.
Constellation took that bid over a higher offer led by French energy giant Electricite de France SA.
Isto deve trazer uma boa dose de confiança ao mercado,com os futuros positivos na casa de 1,5%...
o que acham?
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