Goldman Sachs Lined Up Buyers of Shares Before IPO, WSJ Reports
Michael:
Agreed,no question about it. Now look what GS has done before they went public, there won't be too many flippers among the large institutional investors on this one from the looks of it.Yup she is a keeper.
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Bloomberg News
May 4, 1999, 2:55 a.m. PT
New York, May 4 (Bloomberg) -- Goldman Sachs Group Inc.
lined up buyers of its shares before its initial public offering,
in an unusual move that sought to cut the chance that investors
would quickly sell its shares for a quick profit, the Wall Street
Journal reported in ''Heard on the Street.'' Goldman told the
IPO's underwriters not to select buyers -- as its share offering
was oversubscribed by about 12 times -- though underwriters were
paid as if the institutional investors bought shares from them.
Underwriters including Morgan Stanley Dean Witter & Co., Merrill
Lynch & Co., Bear Stearns Cos. and Credit Suisse Group's Credit
Suisse First Boston could each get up to $4 million in fees,
unnamed persons said; Goldman declined comment, the Journal
reported.
Goldman raised $3.66 billion in its IPO yesterday by selling
a 14.8 percent stake, ending 130 years as a private partnership
to become the fourth-largest U.S. securities firm by market
value.
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