The Blackstone Group has converted some of its shares in BankUnited Inc. into non-voting stock in a move that should allow its own chief executive' to keep his personal financials private.
Blackstone on Wednesday converted 5.4 million shares of its common stock in the Miami Lakes, Fla., company into non-voting preferred stock, reducing its voting power to 8.5%, according to a filing with the Securities and Exchange Commission. Previously, the New York firm held 13.7 million voting shares in the company, or a roughly 14.1% stake.
The Federal Reserve Board can require the personal information of top executives of firm's that own 10% or more in a public company. Several media outlets reported that the sale was tied to a desire by Stephen Schwarzman, Blackstone's CEO, to avoid such disclosure.
BankUnited briefly considered selling itself before decided to remain independent in January. The company also completed its acquisition of Herald National Bank in New York on Wednesday.