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FACEBOOK IPO
POSTED BY EIZ ON THURSDAY, 19 JANUARY, 2012, 7:14 AM
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    "The Facebook IPO will be iconic," said James Montgomery, chief executive of San Francisco-
    based investment bank Montgomery & Co, which advises tech companies on mergers,
    acquisitions and private placements. Facebook can easily negotiate a 1 percent ...


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FACEBOOK IPO
POSTED BY EIZ ON THURSDAY, 19 JANUARY, 2012, 7:14 AM




                                                              IMF chief Christine Lagarde led a global
                                                              push for the euro zone to boost its
                                                              financial firewall, saying "if it is big enough
                                                              it will not get used". Full Article Infosys:


                                                              REUTERS - Facebook's initial public
                                                              offering is likely to set a new standard for
                                                              how low investment banks are willing to
                                                              go on advisory fees to win big business.


                                                              The world's largest online social network
                                                              is expected to tap public markets for $10
                                                              billion in the coming months in an offering
    that will value the company at up to $100 billion, according to sources familiar with the planned
    IPO. It will be one of the biggest U.S. market debuts ever, and a prized trophy for the investment
    bankers seeking to win lead advisory roles.


    That has set up a fierce competition on Wall Street, particularly between the presumed front-
    runners Morgan Stanley (MS.N) and Goldman Sachs Group Inc (GS.N), which may offer their
    underwriting services for as little as 1 percent of gross proceeds, bankers and industry observers
    said.


    That would be far less than the 7 percent fee that smaller deals typically fetch, or the 2 or 3 percent
    that large deals tend to command.


    "The Facebook IPO will be iconic," said James Montgomery, chief executive of San Francisco-
    based investment bank Montgomery & Co, which advises tech companies on mergers,
    acquisitions and private placements.


    Facebook can easily negotiate a 1 percent fee for the entire group of investment banks that will
    peddle its shares, Montgomery said, "much to the chagrin of the underwriters."


    Such a low fee is practically unheard of for investment banking deals, apart from the offerings of
    bailed-out companies General Motors Co (GM.N), American International Group Inc (AIG.N) and
    Ally Financial Inc (GKM.N), which sold shares held by the U.S. government in the aftermath of the
    financial crisis.


    But Facebook has several advantages that will allow the company to haggle for a lower fee: it will