Monday, January 11, 1999

Goldman shuffles

Associated Press


NEW YORK -- Goldman Sachs & Co. is shaking up its top management, with Jon Corzine stepping aside as co-chief executive to concentrate on reviving the elite investment bank's plans to go public.

Bishop Estate
owns stake

Hawaii's Kamehameha Schools/Bishop Estate has invested about $500 million for an estimated 10 percent stake in Goldman Sachs.

Corzine will remain co-chairman as Henry Paulson Jr. is elevated to sole CEO of Wall Street's last major private partnership.

Corzine will step away from day-to-day operating responsibilities to guide the firm's plans to sell stock to the public for the first time and dissolve Goldman's 130-year-old partnership.

The company was forced to delay its planned stock offering of a 10 percent to 15 percent stake last September after a severe slump on Wall Street, but the market has since staged a strong rally.

A company statement did not say when Goldman might attempt its offering, and a spokesman did not return calls seeking comment. The cable business news network CNBC reported today that the IPO is expected by summer.

Goldman last month reported that its fourth-quarter profits plunged 81 percent to $107 million due to its exposure to turbulent overseas markets. For all of fiscal 1998, Goldman's profits fell 3 percent to $2.92 billion.

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