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.

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