23Sep Goldman Gets Buffett’s Backing in $7.5 Billion Fundraising Plan

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Goldman Sachs Group Inc. won the backing of Warren Buffett, the world’s preeminent stock-picker, as the Wall Street firm seeks to raise cash from investors whose faith in the investment-banking business model has been shaken.

For Goldman, Buffett’s endorsement came at a price. Berkshire Hathaway Inc., led by the 78-year-old billionaire, is buying $5 billion of perpetual preferred stock with a 10 percent dividend. Berkshire also gets warrants to buy $5 billion of common stock at $115 a share at any time in the next five years. The common stock closed yesterday at $125.05, providing Buffett with an instant paper profit of $437 million.

“It’s a hell of a deal for Buffett,” said Brad Hintz

Read more at Bloomberg.com