Goldman Sachs limits Facebook share offering

19 January 2011

Goldman Sachs is to limit its sale of shares in social networking website Facebook to investors based outside of the US.

The initial public offering (IPO), which is expected to raise $1.5 billion, is to be limited as the bank is concerned that the “intense media coverage" surrounding news of the sale could result in financial industry regulations being broken, the bank explained.

In a statement, the financial institution said: “Goldman Sachs concluded the level of media attention might not be consistent with the proper completion of a US private placement under US law.”

“We regret the consequences of this decision, but Goldman Sachs believes this is the most prudent path to take,” the bank explained.

Goldman also added that the decision to limit the IPO was its own and had not been requested by industry regulators.

At the start of the year Goldman announced it has invested $450 million into Facebook with Russian telecoms firm Digital Sky Technologies investing a further $50 million in the social networking website.

The total investment saw Facebook valued at $50 billion with the $1.5 billion being offered to investors in addition to this figure.

By Jim Ottewill

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