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To: Lizzie Tudor who wrote (54343)	4/30/1999 3:24:00 PM
From: Glenn D. Rudolph	Respond to of 164684

Top Financial News Fri, 30 Apr 1999, 3:21pm EDT Justice Department Probing Possible Price-Fixing in Initial Stock Sales U.S. Probes Alleged Price-Fixing by IPO Underwriters (Update1) (Updates with Justice Department confirmation, Lehman comment) Washington, April 30 (Bloomberg) -- U.S. antitrust authorities are investigating allegations that securities firms illegally conspired to fix underwriting fees charged in initial public offerings. ''The Justice Department is looking at the possibility of anticompetitive practices in underwriting services for initial public offerings,'' said Gina Talamona, spokeswoman for the Justice Department's antitrust division. Goldman, Sachs & Co. disclosed that it received a civil subpoena yesterday seeking information for an ''investigation of an alleged conspiracy among securities underwriters to fix underwriting fees.'' Goldman made the disclosure in a filing with the U.S. Securities and Exchange Commission for its planned initial public offering, which is expected to take place next week. Lehman Brothers Inc. also received a civil subpoena in connection with the Justice Department probe, said spokesman Chris Cosentino. The Justice Department inquiry follows private law suits alleging securities firms colluded to fix fees paid in connection with initial public offerings. These cases were consolidated into a class action lawsuit in February, according to regulatory filings. The suit, filed against a group of underwriters on behalf of investors who bought securities in public offerings, alleges that securities firms consistently set the underwriting spread they charged at 7 percent, particularly for securities sales that ranged in size from $20 million to $80 million. Officials at Goldman declined immediate comment. -- Miles Weiss and Greg Stohr