Google chairman to sell USD 2.5 bn of shares

Google's Chairman Eric Schmidt plans to sell 3.2 million "A" shares, currently worth USD 2.5 billion, over the next year, Google has said in a filing with the Securities and Exchange Commission.

The sale amounts to 42 per cent of Schmidt's 7.6 million Class A and Class B shares in the company, a 2.3 per cent stake in the company, but 8.2 per cent of voting power.

The sale is part of a pre-arranged trading plan for Schmidt's "long-term strategy for individual asset diversification and liquidity," according to the filing.

"Using this trading plan, Eric can diversify his investment portfolio and can spread stock trades out over a period of one year to reduce market impact."

Google's share price climbed 1.5 per cent yesterday to a new all-time record of USD 785.37, putting the value of the shares Schmidt will sell at USD 2.51 billion.

In its September 2012 billionaires list  - when Google shares crossed the USD 700 line for the first time - Forbes ranked Schmidt 138th in the world, with his fortune worth USD 7.5 billion.