Facebook Inc. (FB) IPO: NASDAQ $62M Offer is Take It or Leave It

Facebook Inc.Facebook Inc. (NASDAQ:FB) probably should have known way back on the day of its IPO that its stock was not going to be received well. When NASDAQ has a “glitch” devoted solely to that stock, that might have been the omen. and while underwriters lost a bunch of money in the hours and days following the IPO, NASDAQ has gotten a lot of heat for how it handled – or mishandled – the trading of Facebook stock that first day, and it has been offering to settle the issue.

But for a couple of the firms who claim harm by the “glitch,” it doesn’t go far enough. But NASDAQ says it won’t compromise any more – it’s take it or leave it for anyone who wants to claim that the 30-minute delay in trading cost them more than the $62 million the exchange is offering for the Facebook Inc. (NASDAQ:FB) IPO. A couple of firms, Knight Capital and Citadel Securities, have both expressed support for the settlement offer, which is currently before the Securities and Exchange Commission for approval – which is expected to reach its decision sometime in the fourth quarter of 2012.

However, UBS AG (NYSE:UBS) and Citigroup Inc. (NYSE:C) have voiced strident objections to the Facebook Inc. (NASDAQ:FB) IPO deal, saying it does not go far enough to cover the losses the “glitch” caused, besides the 30-minute delay in trading the first day Facebook shares were available. But with NASDAQ already raising its settlement amount from an initial $40 million to the current $62 million, it will not budge any more, and is willing to risk legal action by any party, citing “robust legal and factual defenses” to defend its offer, said NASDAQ chief financial officer Lee Shavel. “We continue to believe … that this addresses the issues that we identified in a very fair, reasonable, and objective manner,” he said.

Facebook Inc. (NASDAQ:FB), after an immediate gain at launch of trading, fell sharply the first day and following days, and UBS AG (NYSE:UBS) and Citigroup Inc. (NYSE:C) were claiming that their losses were mainly due to the “glitch” that delayed trading for 30 minutes and resulted in NASDAQ resorting to a secondary trading system that caused delays in trades and confirmations, which made investors’ losses deeper than they should have been, it is argued.

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Most Famous Gay Athletes

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!