National Business Briefs for May 4

National Business Briefs for May 4.
Published: May 4, 2012
Advertisement
;

Business briefs

Nation

Equity firm's IPO falls short

Private equity firm The Carlyle Group raised $671 million from its initially public offering of some 30.5 million common units. The company's shares are edging up, adding 36 cents to $22.36 on the Nasdaq in their first 90 minutes of trading. The offering price of $22 was below the range of $23 and $25 given by Carlyle in a regulatory filing. Carlyle, founded in 1987, plans to use the offering's net proceeds to repay debt and for general corporate purposes. The firm first filed plans to go public in September, a rocky time in the market when many companies with planned offerings were delaying them. Carlyle is among the largest and best-known private equity firms. .

Facebook sets stock range

Facebook, the company that turned the Web social, has set a price range for an initial public offering of stock that values the company at up to $95 billion. Facebook's IPO would be the biggest ever for an Internet company. Facebook disclosed the price range of $28 to $35 per share in a regulatory filing Thursday. At the high end, Facebook and its current shareholders could raise as much as $13.58 billion. That happens if the underwriters sell extra stock reserved for overallotments, which they will likely do given the excitement surrounding the IPO. That's much higher than the 2004 IPO for current record-holder Google Inc., which raised $1.9 billion including the overallotment. The IPO valued the company at $23 billion. Google is now worth about $200 billion. Facebook Inc.'s IPO has been highly anticipated, not just because of how much money it will raise but because Facebook itself is so popular.

Fee deadline set in court case

A New York man suing for half ownership of Facebook has two weeks to either pay more than $90,000 in court-awarded fees to the social networking site's lawyers or show a judge why he can't. The fees cover the time Facebook's lawyers spent filing paperwork to get Paul Ceglia to comply with orders to turn over materials as part of his lawsuit against the Menlo Park, Calif.-based company and its founder, Mark Zuckerberg. A U.S. magistrate in Buffalo gave Ceglia 14 days from Thursday to either pay or produce bank accounts, tax returns and other documents to show why he can't. The order says Ceglia's failure to comply could bring even more sanctions, including the lawsuit's dismissal.

Yahoo CEO faces challenge

A major Yahoo shareholder is accusing the Internet company's CEO of lying about his technology credentials to make himself appear more qualified for the job. Activist hedge fund Daniel Loeb says he has discovered that Yahoo CEO Scott Thompson doesn't have a bachelor's degree in computer science from Stonehill College near Boston as the company states in regulatory documents filed last week. He made the allegation in a letter on Thursday to Yahoo's board of directors. Yahoo Inc. confirmed Loeb's findings, but the company attributed the misinformation to an “inadvertent error.” Loeb is leading a campaign to shake up Yahoo's board so he can help come up with a strategy to boost the company's long-slumping stock price.



Trending Now


AROUND THE WEB

  1. 1
    Baylor's Shawn Oakman not impressed by OU's win over Alabama in Sugar Bowl
  2. 2
    Dez Bryant, three Sooners in NFL trade value top 50 (so far)
  3. 3
    Johnny Manziel's No. 2 leads NFL in jersey sales
  4. 4
    You're more likely to get a raise now
  5. 5
    Google has a plan to speed up the Web
+ show more