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Google Applies to List Shares on Nasdaq
By Javier David and Nicole Maestri, Reuters
NEW YORK (July 12) - Google Inc. said it plans to list its $2.7 billion initial
public offering -- the most hotly anticipated of the year -- on the Nasdaq Stock
Market Inc. in a blow to the New York Stock Exchange.
The Nasdaq and its larger rival the NYSE have publicly indicated they were
aggressively courting Google, though analysts have speculated the Nasdaq had an
advantage.
In an amended regulatory filing with the Securities and Exchange Commission,
Google said it would list with Nasdaq. It did not specify which trading symbol
it intends to use.
Given the significance of the announcement, the Nasdaq was restrained in its
response. Bethany Sherman, a Nasdaq spokeswoman, said the market ''typically
does not comment on pending IPOs.''
The NYSE put its best face on Google's decision, issuing a statement that said:
''Google is an outstanding company with a great management team, and we wish the
company well with its initial public offering.''
During the technology boom of the 1990's the Nasdaq saw its cachet soar as the
premier destination for technology listings. The Nasdaq's fortunes have waned
since the dot-com bubble burst, but Google's listing suggests the market remains
attractive for high-profile public offerings.
GOOGLE'S DECISION SEEN SLIGHTLY ANTI-CLIMACTIC
Analysts, however, broadly agreed that the Nasdaq was likely to emerge the
victor.
''I wouldn't say it's a huge surprise,'' said Robert Hegarty, vice president of
securities and investments at research firm Tower Group. Tower Group is majority
owned by global news and information company Reuters Group Plc.
''Google obviously is the biggest technology IPO to come out in years, and
Nasdaq probably pulled out all the stops to retain their rep as the world's
leading technology (market)'', Hegarty added. ''My guess is that they made it
real attractive.''
While the NYSE is home to a mix of 2,800 small, mid-size and juggernaut
companies that collectively have a market valuation of $18 trillion, the Nasdaq
trades some of the technology sector's most recognizable bellwethers -- most
notably Yahoo Inc. and Microsoft Corp.
''I guess they see more liquidity in the Nasdaq environment,'' said Sal Morreale,
who follows IPOs for Cantor Fitzgerald, adding that Google's decision to list on
Nasdaq was a big plus for the market.
The news was hardly a blow to the Big Board, which has sustained
highly-publicized corporate governance travails. The NYSE is still considered
the world's premier exchange.
But at least one analyst said the Google listing could have been a tacit
endorsement of the NYSE's new push to expand its electronic trading abilities
while preserving its open-outcry system of trading.
''It would have been a nice wind for the NYSE because as they move to this
hybrid (electronic/human) trading model ... it would have been a nice stake in
the ground for them to demonstrate their commitment to technology,'' Hegarty
said.
Reut14:54 07-12-04
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