Warren Buffett to become major Goldman shareholder

INVESTOR Warren Buffet is to become one of Goldman Sachs’ top 10 shareholders, after he amended the terms of a 2008 deal to exchange his warrants for stock.

Under a 2008 deal, Buffett's investment vehicle Berkshire Hathaway had held the right to acquire about 43.5m shares at an exercise price of $115.

Goldman said it will give Berkshire shares reflecting the difference between the warrants' original exercise price of $115 and the average closing price of Goldman's stock for the 10 trading days up to 1 October.

At that price, the structure of the deal implies that Berkshire would receive 9.6m Goldman shares, making Buffett a major shareholder in the investment bank.

"We are pleased that Berkshire Hathaway intends to remain a long-term investor in Goldman Sachs," Lloyd Blankfein, chairman and chief executive of Goldman Sachs, said this afternoon.

Buffett confirmed today that he intends to hold "a significant investment" in Goldman.

In Other News