Goldman Sachs (NYSE:GS) denied a report Tuesday that first appeared in the Wall Street Journal that it had offered Libya's sovereign wealth fund a large stake in the company after several complicated investments made by Goldman with $1.3 billion of the fund's money lost 98% of their value.
Goldman spokesman Lucas van Praag said the firm never proposed a deal that would have resulted in the Libyan Investment Authority getting an equity stake in the company. The bank would have had to get approval from its board and the Federal Reserve before it could have reached such a deal.
He did say the LIA was one of the investors to call about a $2.5 billion equity offering, but that Goldman never approached the LIA.
He also said the $1.3 billion in investments that resulted in huge losses were designed and approved by the LIA, and that Goldman was hired to execute the trades.
Goldman Sachs Group has a potential upside of 34.5% based on a current price of $140.29 and an average consensus analyst price target of $188.68.