Goldman Sachs Group said on September 23 that Berkshire Hathaway would buy $5bn of perpetual preferred stock in a private offering. The preferreds carry a dividend of 10% and are callable at any time at a 10% premium.

Berkshire Hathaway, headed by Warren Buffett, will also receive warrants to purchase $5bn of common stock at a strike price of $115 per share, exercisable at any time for five years.

In addition, Goldman said on September 24 it had raised $5bn in common equity in a public offering, increased from an originally intended $2.5bn.

Last week, MidAmerican, a utility owned by Berkshire, agreed to buy Constellation Energy for $4.7bn, about half the price the company’s shares had fetched just a few days earlier.

Berkshire had $31bn in cash at the end of June.

• Goldman statement on Buffett
• Goldman statement on offering

22 Sep 2008 -

End of an era

18 Sep 2008 -

Wounded prey