Warren Buffet's company Berkshire Hathaway will invested 5 billion dollars in Goldman Sachs.
Berkshire will buy $5 billion of perpetual preferred stock that carries a 10 percent dividend. It also will receive warrants to buy $5 billion of common stock at $115 per share, exercisable within five years.
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.
Buffet expressed confidence in Goldman Sachs "Goldman Sachs is an exceptional institution"
Buffet referred to Goldman Sachs's extensive global franchise, strong management, and financial capital explaining his investment.
Goldman Sachs released the following public statement
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.
Goldman Sachs will also issue 2.5 billion in common stock
Goldman's shares are up 8,4% on news of the deal.
U.S. stock index futures surged in extended trading on Tuesday after Warren Buffett's Berkshire Hathaway surprised investors with a $5 billion investment in Goldman Sachs Group
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