FOX Business Network’s Charlie Gasparino reports Facebook was “clearly annoyed” by the leak of their underwriter selection process and there was concern that it might weaken Morgan Stanley’s (MS) position as lead underwriter in the company’s initial public offering (IPO). Gasparino reports that “Goldman Sachs (GS), which is the other possible lead underwriter,” has “almost no shot at that lead underwriting spot” because “Facebook is worried about all the controversy surrounding the firm.”
People inside Goldman Sachs tell Gasparino they are “praying for a co-manager role in the deal, being on the right side of the deal with whoever they put on the left, which it is looking like is Morgan Stanley.” Excerpts from the report can be found below, courtesy of Fox Business Networks.
On the future of the Facebook IPO:
“They were clearly annoyed about the leak last week. There was some talk around underwriting circles, that Morgan Stanley, which is the lead underwriter, might weaken their position because people were pointing at them as the leak. But we hear now if Goldman Sachs, which is the other possible lead underwriter is looking to get them out. People close to Goldman are telling me they don’t think so. They have almost no shot at that lead underwriting spot.
The reason is that Facebook is worried about all the controversy surrounding the firm. People inside Goldman are praying for a co-manager role in the deal, being on the right side of the deal with whoever they put on the left, which it is looking like is Morgan Stanley.”
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