Berkshire to invest $5B in Goldman Sachs

Berkshire Hathaway, the insurance-focused conglomerate run by Warren Buffett, agreed Tuesday to invest at least $5 billion in Goldman Sachs Group Inc., according to a MarketWach report.

Berkshire is buying $5 billion of perpetual preferred stock in Goldman. The preferred stock has a dividend of 10 percent and is callable at any time at a 10 percent premium. Berkshire will also get warrants to purchase $5 billion of Goldman common stock at a price of $115 each, the report said.

Berkshire can exercise the warrants at any time over the next five years, Goldman said in a statement.

Goldman also said it's raising at least $2.5 billion by selling common stock in a public offering.

Source : Triangle Business Journal

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