Investment bank Goldman Sachs & Co.
Monday raised the price of its planned stock offering to a
maximum of $3.8 billion, hoping to cash in on the recent rise in
shares of publicly traded financial services firms.
Goldman, which is Wall Street's last remaining big
investment banking partnership, will sell its shares for $45 to
$55 a piece, up from the range of $40 to $50 a share, the firm
said in an amended filing with the U.S. Securities and Exchange
Commission. As expected, Goldman also said it would wrap up the
stock offering next month.
The price change means that Goldman's 60 million-share stock
offering in May will be worth a maximum of $3.8 billion,
including an extra 9 million shares the firm hopes to sell if
investor demand is strong enough. The stock offering, which
equals an 11 percent stake in the firm, values Goldman at $24
billion-$30 billion, including counting the 73.3 million shares
the firm has set aside for employee stock awards.
Goldman raised the price of the offering because of the
recent rise in shares of its publicly traded rivals such as
Merrill Lynch and Co. Inc. and Morgan Stanley Dean Witter & Co.
Thanks to a rebound of key securities businesses from the global
turmoil last fall, Morgan Stanley's shares recently hit a record
high and Merrill's stock is close to its all-time high of
$109.13 last year.
In the filing, Goldman also for the first time detailed how
many shares its top executives hold and disclosed their salary
this fiscal year: $600,000 each.
The firm's chief executive, former investment banker Henry
Paulson, holds about 4.1 million shares, with an estimated value
of $185 million to $225 million. Other executives, such as Vice
Chairman Robert Hurst and Co-Chief Operating Officers John Thain
and John Thornton, own more than 3 million shares each, the
filing showed. None of them will sell shares in the stock
offering, the filing showed.
The firm did not disclose how many shares are held by its
former chief executive and the main architect of the plan to
take the 130-year old partnership public, Jon Corzine. Corzine,
a former bond trader, earlier this year said he would quit the
firm after the stock offering.