Chrysler CEO reiterates no IPO in 2012

DETROIT, Tue Jul 31, 2012 – Chrysler Group LLC Chief Executive Sergio Marchionne said on Tuesday, as he has previously, that an initial public offering of company stock will not occur this year.
“This is not a 2012 event,” Marchionne said on a conference call on Chrysler’s second quarter earnings. Marchionne is also chief executive of Chrysler’s majority owner Fiat SpA.
“We obviously have ongoing discussion with VEBA” about a possible IPO for Chrysler in 2013, Marchionne said.
Fiat owns 58.5 percent of Chrysler and VEBA, the healthcare trust for Chrysler retirees run by the United Auto Workers union, owns the remaining shares.
Marchionne in early July announced the intention for Fiat to exercise a call option to increase its share in Chrysler by 3.3 percentage points to 61.8 percent.

SEC may order Nasdaq to upgrade trading systems: WSJ

NEW YORK, Fri Jun 29, 2012 – U.S. securities regulators may force Nasdaq OMX Group Inc. to upgrade its trading systems following last month’s glitch-ridden IPO of Facebook Inc., the Wall Street Journal reported.

The Securities and Exchange Commission is looking into what caused the glitches that left the market makers – who facilitate trades for brokers – in the dark for hours as to which trades had gone through.

As part of the deepening investigation, regulators are weighing whether to demand Nasdaq to revamp its processes for developing, changing, testing and implementing the computer code used in initial public offerings and other exchange functions, the newspaper said, citing people familiar with the matter.

The SEC hasn’t decided yet whether to take any enforcement action against Nasdaq, the paper said.

The news comes more than six weeks after Facebook’s $16 billion initial public offering on May 18, where technology glitches and a communication breakdown marred the trading of the stock.

The exchange’s executives are also reviewing its management structure, focusing on the operations and technology areas overseen by Anna Ewing, the Journal said, citing people familiar with discussions inside Nasdaq.

Ewing could not be reached for comment outside regular U.S. business hours.

Nasdaq’s board first discussed potential ways to restructure its operations and technology unit, including possibly replacing Ewing as the supervisor over both areas, more than four weeks ago, the newspaper said, citing one person with direct knowledge of the discussions.

Neither the SEC nor the Nasdaq could be immediately reached for comment.

Morgan Stanley faces Facebook fallout, limits damage

NEW YORK, Wed Jun 27, 2012 – Morgan Stanley was quick to dismiss suggestions its status as the king of initial public offerings for Silicon Valley was under threat because of the botched Facebook Inc. IPO last month. And that confidence may be warranted.

While Morgan Stanley has been snubbed by some technology companies, the repercussions for the Wall Street investment bank have been limited, according to sources familiar with the situation.

Just a week after the Facebook debut, Ruckus Wireless chose Goldman Sachs Group Inc. over Morgan Stanley as the lead underwriter for its IPO, sources familiar with the matter said.

One of the sources said the company’s decision had nothing to do with the social networking website’s debacle, but a second said Facebook had at least some influence on the decision.

Ruckus, which supplies WiFi products to mobile operators, chose Goldman primarily because it liked the firm’s banker and the pitch, the sources said. Morgan Stanley is now one of the bookrunners on the IPO.

Some companies and rivals have railed against Morgan Stanley’s tendency to monopolize IPOs – a practice that is not uncommon on Wall Street. The bank retained tight control over information, decisions and the allocation of Facebook shares, even though there were 33 bookrunners on the offering, other underwriters have said.

In fact, the bank has long argued it is right to do so, telling clients it offers them “one throat to choke” if something goes wrong, sources familiar with the situation said.

But at least one client, Palo Alto Networks, which has hired Morgan Stanley as its lead bookrunner, is no longer buying into that argument. The security software maker has asked its other underwriters, which include Goldman and Citigroup Inc., to be more active in its IPO, which is planned for later this summer, sources familiar with the company said. That will likely mean having more of a voice in book-building, as well as pricing discussions.

Morgan Stanley faces Facebook fallout, limits damage

NEW YORK, Wed Jun 27, 2012 – Morgan Stanley was quick to dismiss suggestions its status as the king of initial public offerings for Silicon Valley was under threat because of the botched Facebook Inc. IPO last month. And that confidence may be warranted.

While Morgan Stanley has been snubbed by some technology companies, the repercussions for the Wall Street investment bank have been limited, according to sources familiar with the situation.

Just a week after the Facebook debut, Ruckus Wireless chose Goldman Sachs Group Inc. over Morgan Stanley as the lead underwriter for its IPO, sources familiar with the matter said.

One of the sources said the company’s decision had nothing to do with the social networking website’s debacle, but a second said Facebook had at least some influence on the decision.

Ruckus, which supplies WiFi products to mobile operators, chose Goldman primarily because it liked the firm’s banker and the pitch, the sources said. Morgan Stanley is now one of the bookrunners on the IPO.

Some companies and rivals have railed against Morgan Stanley’s tendency to monopolize IPOs – a practice that is not uncommon on Wall Street. The bank retained tight control over information, decisions and the allocation of Facebook shares, even though there were 33 bookrunners on the offering, other underwriters have said.

In fact, the bank has long argued it is right to do so, telling clients it offers them “one throat to choke” if something goes wrong, sources familiar with the situation said.

But at least one client, Palo Alto Networks, which has hired Morgan Stanley as its lead bookrunner, is no longer buying into that argument. The security software maker has asked its other underwriters, which include Goldman and Citigroup Inc., to be more active in its IPO, which is planned for later this summer, sources familiar with the company said. That will likely mean having more of a voice in book-building, as well as pricing discussions.

Business software IPOs hope to trump market woes

NEW YORK, Fri Jun 8, 2012 – Data analysis software company Tableau Software and developer tools maker Atlassian are among several small, business software firms preparing to go public in the next 12 months, hoping a growing market for cloud computing will shield them from the aftermath of Facebook’s botched IPO and Europe’s woes.

Sources familiar with the situation said others include: AppSense, whose user virtualization technology allows people to use different devices; Marin Software, which offers an online advertising management platform; Rapid7, which makes network security software; Rally Software, a provider of project management tools; and CollabNet, which offers web-based software development tools.

These business software companies join other tech firms that are also looking to go public. Cloud-based phone systems provider RingCentral is close to picking bankers, sources familiar with the situation said. Ruckus Wireless, which supplies Wi-Fi products to mobile operators, has chosen Morgan Stanley and Goldman Sachs as its lead underwriters, the sources said.

All the seven business software companies offer products for the software as a service, or SaaS, market, in which software and associated data are hosted on remote servers, or the cloud. This segment of the market has been increasing in popularity because it is viewed as less costly and easier to implement than traditional hosting methods.

Tech behemoths including Oracle Corp, SAP AG and IBM Corp have spent billions to buy such companies in the past two years. The overall market for enterprise software grew 9.5 percent to $267 billion in 2011 and is expected to top $288 billion this year, according to Gartner.

That means these companies may form one bright spot in an otherwise moribund market for initial public offerings. U.S. IPOs, excluding Facebook, are down 53 percent this year, according to Thomson Reuters data. Facebook’s IPO last month further added to the chill as market problems at debut and the subsequent fall in its share price burned scores of investors.

Facebook market makers’ losses total at least $100 million

NEW YORK, Fri May 25, 2012 – Claims by four of Wall Street’s main market makers against Nasdaq over Facebook’s botched IPO are likely to exceed $100 million, as they and other traders continue to deal with thousands of problems with customer orders.

A technical glitch delayed the social networking company’s market debut by 30 minutes on Friday and many client orders were delayed, giving some investors and traders significant losses as the stock price dropped. The exchange operator is facing lawsuits from investors and threats of legal action from brokers.

Four of the top market makers in the Facebook IPO – Knight Capital, Citadel Securities, UBS AG and Citi’s Automated Trading Desk – collectively have probably lost more than $100 million from problems arising from the deal, said a senior executive at one of the firms.

Knight and Citadel are each claiming losses of $30 million to $35 million, potentially overwhelming a $13 million fund the exchange set up to deal with potential claims.

Nasdaq also has to contend with the outside prospect that it could lose the Facebook listing entirely after having just obtained it.

Fidelity Investments facing ‘thousands’ hit by Facebook woes

BOSTON, Thu May 24, 2012 – Fidelity Investments said it was working with “thousands” of brokerage clients affected by trading issues that have engulfed Facebook Inc.’s much-anticipated initial public offering, according to a source familiar with the situation.

The social media site’s IPO has been steeped in controversy since it started trading last Friday.

Almost a week later, many investors have found that their orders for Facebook were not executed at the prices they thought, said advisers, who declined to be identified because they are not allowed to speak to the press.

All Facebook stock trades in clients’ accounts from May 18 have been confirmed, a Fidelity spokesman said.

“On behalf of our customers, Fidelity’s senior management has been working with the regulators, market makers and Nasdaq to represent all of our customer’s trading issues from May 18, and we will continue to do so until we are confident that Nasdaq has done everything it can to mitigate the impact to our customers,” the spokesman said.

Nasdaq had all orders, executed or not, returned to member firms by 1:50 p.m. EDT on Friday, according to a trading alert issued by the exchange on Monday morning.

Fidelity, a mutual fund company that also runs a large brokerage, issued a special notice to customers who submitted orders to buy Facebook shares on Friday, saying they may have experienced delays in status updates.

“We realize that some customers still have questions about how these delays may have affected their trading activity,” Fidelity said in the notice.

“We understand that Nasdaq is working with federal regulators to determine what, if any, accommodation might be made. However, customers should assume that any shares of Facebook stock currently credited to their accounts are owned by them and available for trading.”

Investors brace for Facebook debut on Wall Street

MENLO PARK, Calif., Fri May 18, 2012 – Investors are bracing for Facebook’s Wall Street debut on Friday after the world’s No.1 online social network raised about $16 billion in one of the biggest initial public offerings in U.S. history.

Valued at $104 billion, Facebook is larger than Starbucks Corp and Hewlett-Packard combined, sparking intense speculation on how much higher its valuation will rise once shares start trading.

“A 15 to 20 percent pop is in the realm of possibility,” said Tim Loughran, a finance professor at the University of Notre Dame. “Given they already moved their IPO range up and increased the size, that’s bullish to begin with.”

Facebook priced its offering at $38 a share on Thursday, but the price could be higher when shares begin trading under the FB symbol on the Nasdaq at around 11 a.m. Eastern Time.

Some expect shares could rise 30 percent or more on Friday, despite ongoing concerns about Facebook’s long-term money-making potential. An average of Morningstar analyst estimates puts the closing price for Facebook shares tomorrow at $50.

The IPO, expected to mint more than a thousand paper millionaires at the company, has received wall-to-wall media coverage and sparked hopes of a boom in sales of everything from San Francisco Bay Area real estate to automobiles.

Facebook employees marked the event with an all-night “hackathon” at the company’s Menlo Park, Calif., headquarters starting on Thursday evening, a tradition in which programmers work on side projects that sometimes turn into mainstream offerings.

Facebook boosts IPO size by 25 percent, could top $16 billion

NEW YORK/SAN FRANCISCO, Wed May 16, 2012 – Facebook Inc. increased the size of its initial public offering by almost 25 percent, and could raise as much as $16 billion as strong investor demand for a share of the No.1 social network trumps debate about its long-term potential to make money.

Facebook, founded eight years ago by Mark Zuckerberg in a Harvard dorm room, said on Wednesday it will add about 84 million shares to its IPO, floating about 421 million shares in an offering expected to be priced on Thursday.

The additional shares will be sold by early investors including PayPal co-founder Peter Thiel, Accel Partners’ James Breyer and investment manager Tiger Global Management, the company said in a filing.

The company itself has not increased the number of shares it will sell.

Zuckerberg’s voting power will be reduced to about 55.8 percent from about 57.3 percent after the IPO as a result of the issue of additional shares, the company said.

The expanded size, coupled with Facebook’s recently announced plans to raise the IPO price range, would make Facebook the third-largest initial share sale in U.S. history after Visa Inc. and General Motors.

The social networking company is drumming up massive demand for the offering even as slowing revenue and user growth spur questions about the long-term Facebook story.

Those concerns over revenue growth were underscored on Tuesday, when GM said it planned to pull out of advertising on Facebook.

Carlyle IPO values company as much as $7.61 billion

NEW YORK, Mon Apr 16, 2012 — Private equity firm Carlyle Group LP said it is looking to raise between $701.5 million to $762.5 million in its initial public offering, valuing the company at as much as $7.61 billion, as it presses on with its plans to catch up with rivals Blackstone, KKR and Apollo.

Most private equity firms haven’t fared well in the public markets. Blackstone Group, the world’s largest private equity firm, has lost about half its market value since it went public in 2007.

Last Thursday, Oaktree Capital Group LLC, a private equity firm focused on debt investments, sold fewer-than-expected shares in an IPO that was priced at the bottom of its expected range. It shares ended trading on Friday down 3.5 percent from their IPO price.

Oaktree’s IPO is viewed by some investors as a litmus test for a public offering from Carlyle Group, which is expected to kick off its IPO roadshow this week.

The IPO market, which has recovered from last year, has seen volatility in the past week. Solar power plant developer BrightSource Energy Inc. withdrew its IPO citing adverse market conditions, whereas Oaktree Capital Management backed aluminum processor Aleris Corp postponed its plans to go public.