August 18, 2005
Google Plans to Sell $4 Billion of Stock
WASHINGTON -- Internet search company Google Inc. on Thursday filed with regulators to sell up to 14.16 million shares of class A common stock, which would be worth $4.04 billion based on last night's closing prices.
Its shares fell as much as 4 percent in preopening trade on Inet after it announced the news.
Google, the world's most popular Internet search engine, said in a filing with the U.S. Securities and Exchange Commission it would use the proceeds for general corporate purposes, including working capital, capital expenditures and acquisitions of complementary businesses, technologies or other assets.
It said, however, that it has no current agreements or commitments for any material acquisitions.
Shares of Google traded at $273.99 before the opening after closing at $285.10 per share on Wednesday on the Nasdaq.
Morgan Stanley, Credit Suisse First Boston and Allen & Co. are underwriting the offering. They have the right to buy an additional 600,000 shares to cover over-allotments.