SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Inktomi (INKT)
INKT 10.97-4.3%Nov 19 3:52 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: RCJIII who wrote (85)6/11/1998 2:21:00 PM
From: greentree  Read Replies (2) of 1945
 
To the thread:

Yesterday the INKT IPO was completed and promptly rose to more than 75% over the IPO price and approximately 300% more than the low range Goldman had originally filed for the company.

It is my understanding that it is the investment bankers business to do full and complete due diligence on INKT and have a keen sense of the market in fairly pricing the company for public sale so that INKT can get the highest sustainable price for its stock.

When the bankers do such a poor job, their institutional clients profit at INKT's and the shareholder's expense. It is certainly true that INKT received at least $30 million less in proceeds than it should have, which is certainly not in the shareholders best interest over the long term. In this case will the company consider legal action to recover the losses? I realize that this may not be politically expedient, however $30 million is $30 million, and as we all know, a few months down the road the investment bankers won't be around unless there is another INKT deal pending.

I have regularly seen this type of "due diligence", and have yet to see a company sue to collect the fair market value of their stock. In a book about law firms published years ago, the Genentech lawyers (PMS) waited by their phones waiting to be advised of a lawsuit for doing such a poor job of pricing that deal, yet the call never came. While they were certainly pleased, they were amazed as well.

I would appreciated comments on this issue.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News