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Corporate Jul 22, 2012

Nasdaq could give firms $100 mn for bungling Facebook IPO

Nasdaq OMX Group Inc is scheduled to release its compensation plan for firms that lost money in the bungled Facebook initial public offering, the FOX Business channel reported on Friday.

The deal being discussed will be all cash, and likely more than the $40 million originally proposed, though nothing had been finalized, the report said, citing sources.

The Facebook IPO cost investors as much as $200 million: AP

Nasdaq is working with the US Securities and Exchange Commission on a second draft of the proposal, according to the report.

One source told the network the new proposal could be as high $100 million, all cash.

Nasdaq had proposed a $40 million pool, made up of $13.7 million in cash, with the rest in trading credits. The plan drew criticism from market makers who lost an estimated $200 million on the IPO, and by other exchanges, which said the trading credits would force the firms to trade on Nasdaq.

Nasdaq declined to comment on the report.

Reuters


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