It is reported that Berkshire Hathaway, a major investment fund owned by Warren Buffet, will get 10 million shares of Goldman Sachs’s stock absolutely for free.
For reference sake, the famous investment banks and the major US bank concluded an agreement during the 2008 crisis. The agreement allowed Warren Buffet to purchase 43.5 million shares emitted by the bank at reduced prices within 5 years after Berkshire Hathaway invested in it some $5bn.
Later the board of directors of Goldman Sachs concluded a new agreement with Berkshire Hathaway. The fund was offered to cancel the previous agreement and get the amount of shares equal to the difference between the current price and the average price taken for the last 10 trading days as of October 1st 2013. The new deal was announced on March 26th 2013.
Obviously, Warren Buffet will become one of the biggest shareholders of Goldman Sachs. That was positive news for the stock, thereby pushing its price 1.06% up.
The chart below, courtesy of , reflects the current state of affairs in the market of GS:
