Buffett’s Berkshire Hathaway (BRK.A, news, msgs)will buy $3 billion in perpetual preferred stock from General Electric (GE, news, msgs).
Buffett’s sweet deal, v.2
Buffett’s investment in GE has a 10% dividend and can’t be called for 3 years. Buffett also gets warrants to buy $3 billion in GE common shares at a strike price of $22.25.
The deal is very similar to one that Buffett cut a week ago with Goldman Sachs (GS, news, msgs). Buffett bought another perpetual preferred stock and received warrants for more stock. Goldman used the prestige of having Buffett as a major investor to sell additional shares to the public.
So much water, So little time