Google admits to float problemsPosted 05/08/2004
Search giant Google has admitted that it may have breached stock market laws in the US.
In a filing to the US Securities and Exchange Commission, Google said it had neglected to register almost 30 million shares and options issued to staff over the past three years.
The search engine is now offering to purchase more than 23 million shares sold to 1,105 employees and another 5.6 million stock options held by 301 people, according to the filing. However, one five per cent shareholder of the company has reportedly declined to accept the offer.
The share rescission would cost Google $25.9 million, a tiny proportion of the company's half a billion dollar reserves.
"These option grants and stock issuances may have violated the Securities Act of 1933 and the state securities laws," the filing states.
California-based Google is currently gearing up for an eagerly-awaited initial public offering (IPO) . It is unclear whether the filing could affect the timing of the $3.3 billion flotation, due to end in a few days.
Google plans to sell 14.1 million shares itself, with another 10.5 million to be sold by existing shareholders, totalling nine per cent of the company's shares. After Google's auction is completed, the shares will begin trading on the Nasdaq stock market under the ticker symbol 'GOOG'. © DeHavilland Information Services plc
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