Google to Take IPO Bids Today(CALIFORNIA)
From Bloomberg News
Google Inc. will begin taking bids for its auction-style initial
public offering today in advance of setting a share price next week.
Individuals and institutions who registered by 2 p.m. PDT on Thursday
would be able to bid for Google stock, the Mountain View, Calif.,
search engine company said on its website.
Google will be able to test whether investors are willing to pay the
$108 to $135 it believes its shares are worth. Analysts concerned
about the company's slowing sales growth and competition from Yahoo
Inc. and Microsoft Corp. have said the IPO may not raise as much as
the $3.47 billion that Google has projected.
"There's no question that there are a lot of risks related to this
offering," said Standard & Poor's analyst Scott Kessler, who
recommends that investors bid $110 for Google shares.
After bidding is closed, Google will set the price for its IPO in
consultation with lead managers Morgan Stanley and Credit Suisse First
Boston. Google has said in filings with the Securities and Exchange
Commission that the auction system is intended to limit the
share-price volatility other companies have experienced in their IPOs.
"Google is trying to get every last penny from investors," said Rick
Jandrain, manager of the $2.5-billion One Group Mid Cap Growth Fund in
Columbus, Ohio, which hasn't registered to buy shares in the IPO.
"They're setting themselves up not to have a successful launch. I
think a lot of people are on the sidelines."
The stock may fall after the IPO because of the "winner's curse,"
common to auction-style IPOs, Google said in filings. That's where
investors believe there is little demand for stock above the clearing
price and refuse to bid higher.
Google is selling into a declining market for Internet stocks. Web
shares have fallen through July and August as Yahoo, Amazon.com Inc.
and IAC/InterActiveCorp reported second-quarter sales that were lower
than analysts estimated.
The company generates 98% of its revenue by selling text
advertisements that appear next to search results and other online
content. The ads appear on Google's own sites as well as those of
companies it's formed partnerships with, including Time Warner Inc.'s
America Online.
Google said it expected its sales growth to slow and profit margins to
decline in the future, partly because of competition.
--
Best regards,
JanadatGmaildotcom
http://janada.blogspot.com
Google Inc. will begin taking bids for its auction-style initial
public offering today in advance of setting a share price next week.
Individuals and institutions who registered by 2 p.m. PDT on Thursday
would be able to bid for Google stock, the Mountain View, Calif.,
search engine company said on its website.
Google will be able to test whether investors are willing to pay the
$108 to $135 it believes its shares are worth. Analysts concerned
about the company's slowing sales growth and competition from Yahoo
Inc. and Microsoft Corp. have said the IPO may not raise as much as
the $3.47 billion that Google has projected.
"There's no question that there are a lot of risks related to this
offering," said Standard & Poor's analyst Scott Kessler, who
recommends that investors bid $110 for Google shares.
After bidding is closed, Google will set the price for its IPO in
consultation with lead managers Morgan Stanley and Credit Suisse First
Boston. Google has said in filings with the Securities and Exchange
Commission that the auction system is intended to limit the
share-price volatility other companies have experienced in their IPOs.
"Google is trying to get every last penny from investors," said Rick
Jandrain, manager of the $2.5-billion One Group Mid Cap Growth Fund in
Columbus, Ohio, which hasn't registered to buy shares in the IPO.
"They're setting themselves up not to have a successful launch. I
think a lot of people are on the sidelines."
The stock may fall after the IPO because of the "winner's curse,"
common to auction-style IPOs, Google said in filings. That's where
investors believe there is little demand for stock above the clearing
price and refuse to bid higher.
Google is selling into a declining market for Internet stocks. Web
shares have fallen through July and August as Yahoo, Amazon.com Inc.
and IAC/InterActiveCorp reported second-quarter sales that were lower
than analysts estimated.
The company generates 98% of its revenue by selling text
advertisements that appear next to search results and other online
content. The ads appear on Google's own sites as well as those of
companies it's formed partnerships with, including Time Warner Inc.'s
America Online.
Google said it expected its sales growth to slow and profit margins to
decline in the future, partly because of competition.
--
Best regards,
JanadatGmaildotcom
http://janada.blogspot.com
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