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| Version 4 | Version 5 |
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| Buffett's firm invests in Goldman | Buffett's firm invests in Goldman |
| (about 1 hour later) | |
| Berkshire Hathaway, the company owned by US investment guru Warren Buffett, has bought $5bn (£2.7bn) worth of Goldman Sachs shares. | Berkshire Hathaway, the company owned by US investment guru Warren Buffett, has bought $5bn (£2.7bn) worth of Goldman Sachs shares. |
| Mr Buffett, the world's most famous investor, said Goldman was an "exceptional institution". | Mr Buffett, the world's most famous investor, said Goldman was an "exceptional institution". |
| Hit by the crisis that has engulfed other major US financial institutions, it was forced to change its status from an investment bank this week. | Hit by the crisis that has engulfed other major US financial institutions, it was forced to change its status from an investment bank this week. |
| Goldman Sachs said the deal would bolster its finances. | Goldman Sachs said the deal would bolster its finances. |
| Berkshire Hathaway is buying $5bn of preferred stock bearing a 10% annual interest rate. | Berkshire Hathaway is buying $5bn of preferred stock bearing a 10% annual interest rate. |
| This is very expensive money for Goldman, not least because if it wants to buy Buffett out, it has to pay a 10% premium Robert Peston, BBC business editor Read Robert's thoughts in full | This is very expensive money for Goldman, not least because if it wants to buy Buffett out, it has to pay a 10% premium Robert Peston, BBC business editor Read Robert's thoughts in full |
| It could increase its holding of Goldman shares as, under the terms of the deal, it has the option of buying $5bn of common stock for $115 per share at any time in the next five years. | It could increase its holding of Goldman shares as, under the terms of the deal, it has the option of buying $5bn of common stock for $115 per share at any time in the next five years. |
| In addition, Goldman Sachs said it was raising at least $2.5bn in common equity in a public offering. | In addition, Goldman Sachs said it was raising at least $2.5bn in common equity in a public offering. |
| Goldman said it was pleased that Warren Buffett had made such a significant investment. | Goldman said it was pleased that Warren Buffett had made such a significant investment. |
| "We view it as a strong validation of our client franchise and future prospects," said chairman and chief executive Lloyd C Blankfein. | |
| "This investment will further bolster our strong capitalisation and liquidity position." | "This investment will further bolster our strong capitalisation and liquidity position." |
| But BBC business editor Robert Peston rejected the notion that Warren Buffett's move was a vote of confidence in the US investment banking system. | But BBC business editor Robert Peston rejected the notion that Warren Buffett's move was a vote of confidence in the US investment banking system. |
| "He's demanded and is receiving a lovely 10% dividend, which means he views Goldman as a high-risk investment," Mr Peston said. | "He's demanded and is receiving a lovely 10% dividend, which means he views Goldman as a high-risk investment," Mr Peston said. |
| "This is very expensive money for Goldman, not least because if it wants to buy Buffett out, it has to pay a 10% premium." | "This is very expensive money for Goldman, not least because if it wants to buy Buffett out, it has to pay a 10% premium." |