Buffett firm to be top 10 investor in Goldman Sachs

 
City A.M. Reporter
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