Monday, May 3, 1999

Bishop Estate
collects $477 mil
in Goldman IPO

It sells a third of its stake

From staff and wire reports


Bishop Estate earned $477 million today from the $3.66 billion initial public offering of Goldman Sachs Group Inc.

Goldman, Wall Street's largest and richest investment banking partnership, today said it sold 69 million shares, or about 14.8 percent of the firm, at $53 per share to institutional investors. Of that total, Bishop Estate sold 9 million shares, or roughly a third of its stake in Goldman.

The $3.66 billion amount raised makes the Goldman IPO second only to Conoco Inc.'s $4.4 billion sale in October.

Now that the New York-based securities firm's shares have been sold to institutional investors, the next step is for the stock to hit the New York Stock Exchange tomorrow. Some investors expect Goldman's shares to surge as much as 20 percent.

The sale gave 130-year-old Goldman Sachs a market value of $24.7 billion, about equal to J.P. Morgan & Co., the fourth-largest U.S. bank, but less than rival Morgan Stanley Dean Witter & Co., which has a market worth of $59.8 billion.

Goldman's offering price was near the top of the $45 to $55 expected range the investment bank set.

After the offering, Bishop Estate retains about 21.9 million shares, or roughly 4.7 percent of the investment banking firm. That stake is worth nearly $1.2 billion based on the offering price but the value could rise as the company's stock begin trading on the open market.

Officials from Bishop Estate could not be reached for comment this morning.

Star-Bulletin reporter Rick Daysog contributed to this report.

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