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Technology Stocks : E Loan Inc -EELN -- Ignore unavailable to you. Want to Upgrade?

To: Labrador who wrote (67)	6/28/1999 4:17:00 PM
From: Mohan Marette	Read Replies (2) \| Respond to of 817

E-Loan IPO price raised but rates a worry NEW YORK, June 28 (Reuters) - Shares of online mortgage provider E-Loan Inc. are expected to sell for $12 to $14 in their market debut on Tuesday, more than originally estimated, but the prospect of rising U.S. interest rates might give some investors pause, analysts said. E-Loan is selling shares to the public one day before the U.S. Federal Reserve is widely expected to hike U.S. rates by a quarter of one percent. But while investors might not rush to buy shares in a business where demand could slacken, analysts noted E-Loan could still receive a warm welcome on Wall Street because premier investment bank Goldman Sachs Group (NYSE:GS - news) was underwriting the deal. Goldman said on Monday the expected price range for E-Loan's offering of 3.5 million common shares was raised to $12 to $14 a share from a lowered range of $9 to $11 a share. E-Loan said on June 10 the estimated price range was reduced from $11 to $13. ''They have Goldman (as underwriter) on one end and then macroeconomic problems on the other,'' Tom Taulli, an analyst at Edgar Online said. ''Interest rates are a cyclical market and they will come back, but in the short-term they are putting a lot of pressure on the company.'' E-Loan, a leading online mortgage provider, claims to offer origination cost savings of more than 50 percent compared to traditional mortgage brokers or single source lenders because it eliminates the commissioned loan agent. (Note: this article is ''in progress''; there will likely be an update soon.) biz.yahoo.com