(RTTNews) - Goldman Sachs Group Inc. (GS: News ) is considering making a multi billion dollar offering of its shares as part of its effort to repay $10 billion of government loan, the Wall Street Journal reported citing people familiar with the matter. The company's plan about the stock offering is expected to be announced as early as next week, the report noted.
Though the exact size of the offering was not yet determined, the company is expected to raise at least several billion dollars, the report noted citing those people.
In the midst of March, there were reports that Goldman Sachs is prepared to repay the loan it received from the U.S. government as part of the Troubled Asset Relief Program by the middle of April.
Repaying the government loan may free the company from stringent government restrictions on executive bonuses and compensation, and is reportedly welcomed by company's employees, executives and also by investors.
Last month, it was expected that Goldman Sachs may consider selling part of its 4.9% stake in Industrial & Commercial Bank of China Ltd., a move that could raise more than $1 billion, and that would have helped its effort to repay those loans as early as possible. But, Goldman Sachs agreed to a new lock-up agreement with regard to its investment in ICBC, agreeing not to sell at least 80% of its stake, at any time prior to April 28, 2010.
It is to be noted that Goldman Sachs received a $5 billion investment from billionaire investor Warren Buffett's Berkshire Hathaway, Inc. (BRKA, BRKB), and also raised $5.75 billion through sale of 46.7 million shares in a public stock offering in September.
Goldman Sachs, which reported a net loss for the fourth quarter of $2.12 billion, is slated to report its first quarter 2009 financial results on April 14 in a release that will be issued at approximately 8:30 am ET.
GS closed Thursday's regular trading session at $124.33, gaining 8.35%, or $9.58.
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