Message Font: Serif | Sans-Serif
UnThreaded | Threaded | Whole Thread (31) | Ignore Thread Prev | Next
Author: rationalwalk Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 218991  
Subject: Re: Goldman Sachs warrants reworked Date: 3/26/2013 10:14 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 2
One interesting twist to this story involves whether Berkshire has better ideas for the $5 billion it would have used to acquire the shares through the warrants. If Goldman shares trade near current levels ($146) prior to October 1, Berkshire should receive around 9.3 million shares without laying out any cash for the shares.

If Buffett still wants to commit $5 billion to Goldman, he could theoretically do so over a period of time and end up with around the same economic ownership he is entitled to purchase under the terms of the warrant ... but I guess the question is why not simply exercise the warrant for $5 billion if he wants the greater ownership?

Does anyone know if there are tax advantages involved in rolling the warrants into shares based on this new agreement and then establishing a higher cost basis for any additional shares Berkshire wishes to purchase?
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (31) | Ignore Thread Prev | Next


Post of the Day:
Saul's Investing Discussions

How to Deal With Investing Emotions
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.