Goldman execs agree to hold on to stocks in Buffett deal
NEW YORK Oct 2 (Reuters) - Senior Goldman Sachs (GS.N: Cotización) executives have agreed to keep the majority of their shares in the company for at least three years, or until Warren Buffett's Berkshire Hathaway Inc (BRKa.N: Cotización) (BRKb.N: Cotización) redeems the Goldman preferred stock it bought last week, whichever comes first, according to a regulatory filing.
The executives, Chief Executive Lloyd Blankfein, Ehief Financial Officer David Viniar, and co-chief operating officers Gary Cohn and Jon Winkelried, signed a letter on Sept 28 stating that they, their families and estates would not sell more than 10 percent their common shares in Goldman until Oct 1, 2011, or until Berkshire redeems the $5 billion in Goldman preferred stock it bought last week when it gave the investment bank a major boost.
Goldman's shares had been struggling among the upheaval in the financial industry.
The preferred shares carry a 10 percent dividend, and Berkshire will also receive warrants to buy $5 billion of common stock within five years. (Reporting by Phil Wahba; Editing by Anshuman Daga)
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