FOX Business Network (FBN) Senior Correspondent Charlie Gasparino reports that Twitter underwriters are hoping for a $40 opening tomorrow. Gasparino went on to report, that Twitter’s underwriting group is “developing a contingency plan” in case the opening prices goes “dramatically above” $40, which would result in a “lengthy delay in the opening as much as a 2:00pm” tomorrow.
On whether Twitter (TWTR) underwriters are looking for a $40 opening:
“Underwriters are telling the FOX Business Network it’s likely to be at $27. Here is what they are worried about and here is what we understand. Underwriting group comprised of JPMorgan (JPM), Morgan Stanley (MS), and what’s that other one that little firm named Goldman Sachs (GS), actually Goldman is leading the underwriting group, but what they are doing is they are developing a contingency plan if the demand of this thing gets out of hand. Here is what we know, they are eyeing, they would love a $40 opening. What they are worried about is the opening going dramatically above that, saying maybe $80, it is a possibility, they are taking it into account.”
On whether the demand for Twitter stock goes above $40:
“What sources are telling the FOX Business Network these are sources inside the underwriting group that they are planning a lengthy delay in the opening as much as a 2:00pm delay. I’m not saying that is going to happen.”
Fox Business Network