Large block deals involved more than $ 10 billion in shares sold by Goldman: media

(Reuters) – Large block deals on Friday that caused a selloff at a group of companies were fueled by sales of more than $ 10 billion executed by Goldman Sachs Group Inc, media reported on Saturday.

FILE PHOTO: The Goldman Sachs company logo is seen in the company’s space on the floor of the New York Stock Exchange (NYSE) in New York, USA, April 17, 2018. REUTERS / Brendan McDermid

Shares of ViacomCBS and Discovery fell about 27% each on Friday, while shares of China-based Baidu and Tencent Music, which are listed in the United States, plunged for the week, falling as much as 33.5. % and 48.5%, respectively, from Tuesday’s closing levels.

Eric Handler of MKM Partners, who covers Discovery, said on Friday that large blocks of shares in the companies Viacom and Discovery were put on the market on Friday, likely exacerbating the declines.

An email to clients seen by Bloomberg News said Goldman sold $ 6.6 billion in shares of Baidu Inc, Tencent Music Entertainment Group and Vipshop Holdings Ltd, before the US market opened on Friday, according to Saturday’s report.

Following this, Goldman sold $ 3.9 billion worth of shares in ViacomCBS Inc, Discovery Inc, Farfetch Ltd, iQIYI Inc and GSX Techedu Inc, according to the report.

A source familiar with the matter said on Saturday that Goldman was involved in the large block transactions.

Goldman Sachs did not immediately respond to a request for comment from Reuters.

The Financial Times reported that Morgan Stanley sold $ 4 billion worth of shares earlier in the day, followed by another $ 4 billion in the afternoon.

Morgan Stanley declined to comment.

The Financial Times reported that Goldman told counterparts that sales were driven by “forced deleveraging,” citing people with knowledge of the matter.

CNBC reported here that the selling pressure was due to the liquidation of positions by the family office Archegos Capital Management, citing a source with direct knowledge of the situation. An Archegos person who answered the phone declined to comment.

Report of Juby Babu in Bengaluru; Additional reporting by Ken Li, Megan Davies, and Sinead Carew; Editing by Diane Craft and Daniel Wallis


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