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Investing.com -- VeriSign (NASDAQ:VRSN) shares dropped more than 7% in early trading Tuesday after Warren Buffett’s Berkshire Hathaway (NYSE:BRKa) sold nearly one-third of its stake in the internet infrastructure and domain name registry company.
Berkshire sold 4.3 million shares at $285 each on Monday, generating $1.23 billion from the transaction. The sale price represented a nearly 7% discount to Monday’s closing price.
Prior to the sale, Berkshire had been VeriSign’s largest shareholder. The transaction reduced Berkshire’s ownership stake in the Reston, Virginia-based company to 9.6% from 14.2%.
An additional 515,032 shares may be sold to meet demand. Berkshire’s remaining holdings are subject to a 365-day lock-up agreement.
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