GOOG: Google : Google Slashes IPO, SEC OK Expected Today

» radiodude - Google Slashes IPO, SEC OK Expected Today

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Do these people have any idea what they are doing?
It takes experience to pull off an IPO, something these people lack. (I've been at 2 companies as they went IPO -- it's not easy)

http://news.myway.com/top/article/id/417...

Google Slashes IPO, SEC OK Expected Today

Aug 18, 12:38 PM (ET)

By Nicole Maestri
NEW YORK (Reuters) - Google Inc. slashed the size of its closely watched initial public offering nearly in half to less than $2 billion on Wednesday, splashing cold water on what has been touted as the hottest Internet IPO in years.

But securities regulators are expected to declare Google's registration statement effective after 4 p.m. EDT (2000 GMT), sources familiar with the matter said, which would pave the way for the world's most popular Web search engine to price its shares and sell them to the public.

Google shares could make their market debut on the Nasdaq stock market (NDAQ.OB) as soon as Thursday, ending the wait for the year's most anticipated IPO.

The offering is now slated to bring in as much as $1.9 billion, sharply lower then expectations that it would raise $3.5 billion if the shares priced at the top of Google's original estimated range of $108 to $135 per share. On Wednesday, Google cut the range to between $85 and $95 a share.

The revision came as Google disclosed in an amended filing that the U.S. Securities and Exchange Commission has asked for "additional information" about the publication of a Playboy magazine article featuring an interview with Google's co-founders.

Google's unusual auction-based IPO has attracted skeptics since it was announced in April, and the IPO is bumping up against a jittery market. Roughly 60 percent of this month's IPOs have priced below their estimated range, according to Thomson Financial.

But market conditions are not purely to blame. Many investors said Google's initial price range was overly optimistic and were wary of investing in the stock.

In addition, Google has disclosed that its general counsel received a notice that the SEC staff intends to recommend the commission pursue civil penalties against him; the Playboy interview has drawn regulatory scrutiny; and the SEC has started an informal inquiry into Google's offer to buy back 23.2 million shares it may have issued illegally.

Google reiterated on Wednesday that it does not believe its involvement in the Playboy article violated securities rules.

"They better get their act together, otherwise they will face a lot of investor scrutiny above and beyond what they probably deserve," said Christopher Baggini, who manages three funds with total assets of about $900 million at Gartmore Global Investments. He said that even $85 to $95 per share was "not necessarily low enough" for the IPO price.

-- posted by radiodude