NEW YORK (Reuters) – Goldman Sachs afore~ it will limit its private placement of shares of social networking locality Facebook to investors outside the United States, citing “intense media coverage.”
Goldman expects to stir up .5 billion for Facebook, the wildly popular site used as a word board and for online social networking.
The chance to buy a cut of Facebook ahead of any future public listing attracted widespread commentary and news coverage, which potentially could bring it under regulatory scrutiny.
“In moderate of this intense media coverage, Goldman Sachs has decided to proceed only with the offer to investors outside the U.S.,” the joint concern said in a statement provided to Reuters.
Goldman began notifying clients of its determination on Sunday.
“We regret the consequences of this decision, excepting Goldman Sachs believes this is the most prudent path to take,” the investing. bank said in the statement on Monday.
Goldman said the decision not to conduct a private placement of the shares of Facebook, a closely held copartnership, in the United States was solely its own and was not required or requested ~ the agency of any other party. That would include the U.S. Securities and Exchange Commission, that is scrutinizing secondary market trading in Facebook shares.
“Once this circumstance received widespread publicity, it conceivably could be argued that Goldman was benefiting from a ecumenical solicitation, via news reports of its efforts on behalf of Facebook,” constructer SEC Chairman Harvey Pitt said.
“My impression is that Goldman is using that since an excuse to save face, given the SEC investigation that has been publicized in the exert ~ure, as a result of this proposed transaction,” said Pitt, who is grand executive of consulting firm Kalorama Partners.
While general solicitation and advertising is quiet prohibited overseas, if the publicity has not been as widespread in other countries, the issuer and the insurer could get comfortable proceeding with the offering, said an industry member of the bar who has advised companies with similar issues.
The Washington, D.C.-based limb of the law asked not to be identified because of the sensitivity of the issues surrounding secluded placements.
Goldman said it had originally planned to conduct a peculiar placement in the United States and offshore.
Facebook already has current a 0 million investment from Goldman Sachs and million from Russian investment firm Digital Sky Technologies, in a deal that valued the concourse at billion.
SPECIAL FUND
Several weeks ago, Goldman approached its most judicious private wealth clients with an offer to take part in a extraordinary fund that will own shares in the world’s biggest communicative networking site. The deal would allow Goldman to offer clients a heated investment opportunity, while allowing Facebook to remain a private company.
No comments:
Post a Comment