Goldman Sachs to receive $5 billion investment from Buffett
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.
Goldman also said it plans to sell at least $2.5 billion of common stock. It announced plans for the offerings after earlier this week announcing it would change its structure to become a bank holding company.
"Goldman Sachs is an exceptional institution," Buffett said in a statement. "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."
Shares of Goldman rose $12.17, or 9.7 percent, to $137.22 in after-hours trading following the announcement. They rose $4.27, or 3.5 percent, to $125.05 in regular trading.
(Reporting by Jonathan Stempel)