FINANCIAL TIMES: The top securities regulator in Massachusetts has issued a subpoena to Morgan Stanley as part of an investigation into whether its analysts communicated revisions of Facebook’s revenue forecasts broadly to all clients ahead of last week’s initial public offering.
In spite of cutting forecasts for Facebook’s revenue growth after the social network group revised its prospectus, the underwriting banks, led by Morgan Stanley, soon afterwards increased the size of the offer by 25 per cent and priced the shares at $38, at the top of a new range of $34-$38…
The subpoena from the US state comes as Facebook shares lost further ground on Tuesday. They closed at $31, 18 per cent below the issue price, as scrutiny of the botched IPO, including software problems on Nasdaq as well as the role of the underwriting banks, intensified… (more)
