TOP investor Warren Buffett has given up his chance to become Goldman Sachs largest shareholder by converting his warrants into a smaller stake in the bank at no additional cost to his outfit Berkshire Hathaway.
Buffett received the warrants as part of a 2008 deal during the depths of the financial crisis, when his investment in Goldman was seen as a vote of confidence in the firm. Under that deal, Berkshire had the right to buy a roughly nine per cent stake for $5bn in total.
Goldman yesterday announced a new deal that would give Berkshire a much smaller stake, but would not require it to commit any capital to exercise the warrants.
At current market prices, Buffett would receive 9.2m shares, or a two per cent stake, making him the ninth largest investor in Goldman
City A.M. Reporter