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World Equity News |
18/08/05Google seeks share profitsGoogle has filed papers with the US Securities and Exchange Commission that say it will sell 14.16 million of its class A shares, but it was close-mouthed about what it would use the money realized from the sale for. The filing included a warning that it might use the funds for purposes that “do not improve our operating results or increase the value of your investment.” The internet search company has traditionally been very reluctant to disclose its plans in advance, but it did say in its filing that it might use the money from the sale for the acquisition of technology, complementary businesses, or other assets, but that it did not have any agreements to do that at present and that it would put the money in easily liquidated investments until it had a use for it. At Wednesday’s closing price of $285.10 per share, the sale of more than 14 million shares would bring in over $4 billion in cash for the company, which already had $3 billion cash at the end of June. The new offering will dilute the value of existing shares by about 5 percent, and some analysts theorized that the new stock offering is Google’s way of cashing in on its current high share price. |
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