- Buffett has purchased $5 billion of perpetual tier-1 equity that yields 6 percent, can have its dividend suspended at any time (whereupon it accumulates at 8 percent) and can be repurchased at any time at a 5% premium.
- Buffett also received gratis options to buy 700 million shares (5 billion dollars face value) at $7.14 per share.
PPS. David Reilly at the Wall Street Journal made the same valuation error as Reuters. Peculiarly they also quote an analyst who thinks the warrants were worth "conservatively $4.40 to $5.60". The upper end of that range is a bit peculiar.