Monday, June 1, 1998

Bishop may
make billions off
Sachs investment

If Goldman Sachs goes public,
the estate's share may be
worth $3 billion

From staff and wire reports


Bishop Estates' investment in Goldman Sachs & Co. could grow to as much as $3 billion if the New York investment banking firm goes public.

Goldman Sachs Chairman and Chief Executive Jon S. Corzine acknowledged to employees this morning that the partnership is considering going public, a source familiar with the situation told Dow Jones News Service.

Corzine told staffers in offices around the world that the firm is looking at selling a stake to the public now, hoping to take advantage of the financial industry's strength, the source said.

The Wall Street Journal reported today that the IPO proposal, to be presented to the 190 partners with equity stakes, values the firm at about $30 billion.

That would place a $3 billion value on Bishop Estate's 10 percent stake of Goldman Sachs. The estate has invested about $500 million to acquire its interest in Goldman Sachs. An estate spokesman could not be reached for immediate comment.

Goldman partners are expected to consider taking the company public at their June 12 meeting.

"It may be that Goldman Sachs considers it needs a larger capital base," said Guy Monson, a director at Sarasin Investment Management Ltd. in London, who manages about $1 billion in assets, told Bloomberg News.

"If you look out over the next five years, they are going to be absolutely at the core of global restructuring."

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