goldman-share-issue-raises-5-billion

Goldman share issue raises $5 billion

The share price responds positively to the dilutive sale, raising the question of what the outcome may have been if it û and other recent confidence-building measures û had come much earlier?
The news last night that Goldman Sachs had raised $5 billion from the public share offering it announced after the close of US trading on Tuesday shows investors are confident that this is a Wall Street institution that will survive the current crisis. Goldman sold 40.65 million new shares at $123 apiece, which translates into a discount of only 1.6% to TuesdayÆs closing price. Even so, it was able to raise twice the amount flagged in the initial announcement.

Investors were likely comforted by the fact that Warren BuffettÆs Berkshire Hathaway had agreed to invest $5 billion in the company û a move that was announced at the same time as the equity offering. Buffett,...
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