Wednesday, May 5, 1999

Estate gets
$144 mil more
from Goldman

By Rick Daysog


Amid the euphoria surrounding the rise in the stock price of Goldman Sachs Group Inc., Bishop Estate quietly earned an additional $144 million from the Wall Street investment banking firm's initial public offering.

Bishop Estate trustee Henry Peters yesterday disclosed that the trust on Monday received $144 million in final partnership distribution from Goldman, which yesterday began trading as a public company for the first time in its 130-year history.

Those distributions are on top of some $477 million in gains enjoyed by the estate through its sale of 9 million shares of Goldman stock in the offering.

The Bishop Estate -- a nonprofit charitable trust that operates the Kamehameha Schools for children of Hawaiian ancestry -- has earned $900 million in quarterly partnership distributions since its initial investment in Goldman back in late 1992, Peters said. It also retains 21.9 million shares in Goldman, or about 4.7 percent of the company, valued at about $1.55 billion based on yesterday's closing stock price.

Overall, Bishop Estate's $500 million investment in Goldman Sachs has increased in value to as much as $3 billion, including the $900 million in partnership distributions.

"This means that we will be able serve the educational needs of more Hawaiian children," Peters said.

For Peters and his fellow trustees, the deal also represents a welcome diversion from the controversy that's rocked the estate and the Kamehameha Schools for the past two years. The IRS is threatening to revoke the estate's tax exempt status if board members don't resign while separate grand juries have indicted Peters and fellow trustee Richard "Dickie" Wong for theft for their alleged role in a kickback scheme involving Bishop Estate land. Both have pleaded not guilty.

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