Morgan Stanley and banks on Bats Global Markets Inc.’s (BATS) initial public offering may lose $7.1 million in fees after the exchange operator withdrew its IPO, felled by a system crash that hurt Apple Inc. (AAPL) and its own stock Businessweek reports.
Fees earned would have been nullified by the cancellation of the offering, said Craig Arcella, a partner at Cravath Swaine & Moore LLP focused on capital markets. Morgan Stanley, Citigroup Inc. (C), Credit Suisse Group AG (CSGN) and other banks would have divided up $1.12 a share for the IPO, according to data compiled by Bloomberg.
“It is a pretty big deal for a company to cancel an IPO once it has priced,” said Arcella, whose clients have included International Business Machines Corp. and State Street Corp. “Usually when something bad happens between pricing and closing, there are ways to disclose your way through it and re- confirm orders….”
Learn more at http://www.businessweek.com/news/2012-03-23/bats-ipo-reversal-may-cost-morgan-stanley-banks-7-dot-1-million
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