Goldman Sachs Group Inc. halted an offering of Facebook Inc. shares to U.S. investors on concern that “intense media attention” on the deal may violate rules limiting marketing of private securities.
Instead, the sale, first reported Jan. 2, will be restricted to non-U.S. investors, the New York-based bank said in an e-mailed statement today. Goldman Sachs and funds it manages had agreed to buy $450 million of closely held Facebook before the bank began seeking investors.
“Goldman Sachs concluded that the level of media attention might not be consistent with the proper completion of a U.S. private placement under U.S. law,” it said in the statement. The move “was based on the sole judgment of Goldman Sachs and was not required or requested by any other party.”
Goldman Sachs, the biggest U.S. securities firm before converting to a bank in 2008, had been trying to sell as much as $1.5 billion in Facebook shares to investors inside and outside the U.S. before making the change announced today. The company didn’t say whether it still expects to raise that amount....Continue ReadingLeave a Comment