New
York, NY - September 23, 2008 -- The Goldman Sachs Group,
Inc. (NYSE: GS) announced today that it has reached an
agreement to sell $5 billion of perpetual preferred stock to
Berkshire Hathaway, Inc. in a private offering. The
preferred stock has a dividend of 10 percent and is callable
at any time at a 10 percent premium. In conjunction with
this offering, Berkshire Hathaway will also receive warrants
to purchase $5 billion of common stock with a strike price
of $115 per share, which are exercisable at any time for a
five year term.
In
addition, Goldman Sachs is raising at least $2.5 billion in
common equity in a public offering.
“We are pleased that given our
longstanding relationship, Warren Buffett, arguably the
world’s most admired and successful investor, has decided to
make such a significant investment in Goldman Sachs. We view
it as a strong validation of our client franchise and future
prospects,” said Lloyd C. Blankfein, Chairman and CEO of The
Goldman Sachs Group, Inc. “This investment will further
bolster our strong capitalization and liquidity position.”
“Goldman Sachs is an exceptional
institution,” said Warren Buffett, Chairman and CEO of
Berkshire Hathaway, Inc. “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.”
The Goldman Sachs Group is a bank holding
company and a leading global investment banking, securities
and investment management firm. Goldman Sachs provides a
wide range of services worldwide to a substantial and
diversified client base that includes corporations,
financial institutions, governments and high net worth
individuals. Founded in 1869, the firm is headquartered in
New York and maintains offices in London, Frankfurt, Tokyo,
Hong Kong and other major financial centers around the
world.
Media
Contact: Lucas van Praag
Tel: 212-902-5400
Investor
Contact: Dane Holmes
Tel: 212-357-2674
