District Judge Robert Sweet has ruled that Facebook (FB), CEO Mark Zuckerberg, COO Sheryl Sandberg and dozens of banks should face investor lawsuits that accuse the social-media site of concealing revenue warnings from its IPO registration statement prior to its listing in May 2012. It was information that Facebook gave to its underwriters' analysts.
"The company's purported risk warnings misleadingly represented that this revenue cut was merely possible when, in fact, it had already materialized," Sweet wrote.
The banks involved include Morgan Stanley (MS), Goldman Sachs (GS) and JPMorgan (JPM).
Sweet has also ruled that Nasdaq (NDAQ) should face lawsuits over the technical problems that plagued the IPO.
In a win for the NYSE (ICE +0.9%), Hilton Worldwide (HLT) will list its multi-billion dollar IPO on the Big Board. It's the 2nd high-profile win over the Nasdaq (NDAQ) in two months for the NYSE (Twitter in October).
Hilton is expected to be valued at $30B-$32B, according to sources, a level which would more than double owner Blackstone's (BX +1.3%) $6B investment made in 2007. That's easier than it sounds - at one point amid the financial crisis and recession, Blackstone was down 70% on its money.
Hilton in 2012 generated revenue of $9.28B, up 5.6% Y/Y, and operating income of $1.1B.
With leaks everywhere, Nasdaq OMX (NDAQ -0.4%) is unable to wait until the close of trade and confirms its head of transaction services is exiting the company. He's not, however, headed to the P-E world; instead he'll become the next president of institutional brokerage service ComvergEx Group.
Mentioned in the past as a CEO Bob Greifeld's successor at Nasdaq OMX (NDAQ -0.3%), head of transaction services Eric Noll is exiting the company to take a job in private equity, reports Charlie Gasparino. His sources say the departure is not a result of the exchange's technical glitches.
The official announcement is expected after the close.
Nasdaq OMX (NDAQ) is among three exchanges - Deutshce Boerse (DBOEY) and the London Stock Exchange (LDNXF) being the others - considering a bid for Euronext, the European exchanges set to be spun off by InterContinentalExchange (ICE) following its purchase of NYSE Euronext, reports the WSJ.
The report quickly adds none of the thee are believed to have yet hired bankers to assist and the current plan is for Euronext to be spun off in a Paris IPO in 2014.
Nasdaq (NDAQ) and the NYSE (NYX) are reportedly nearing an agreement to back up each others' data streams in a move that would help overcome common points of failure.
The exchanges are also discussing other ideas that could stabilize their infrastructure, such as passing the operational control of their securities information processors (SIP), which include price quotes, to a third party.
The report follows a number of technical problems on financial bourses, such as an outage of the Nasdaq in August.
"The exchanges need to help one another," says analyst E. Paul Rowady. "They have similar headline risk from the ongoing glitchapalooza."
Q3 revenue of $506M is up 23% Y/Y, with much of the gain driven by acquisitions (eSpeed, Thompson Reuters). On an organic basis, revenues grew 4%. Non-transaction-based revenues climbed to 73% of total from 27% a year ago.
Operating expenses of $304M climbed 32% from last year, again driven by those acquisitions. On an organic basis, they rsoe 7%. The firm tightens up core expense guidance to $1.075B-$1.09B from $1.07B-$1.1B.
In a move that could pave the way for a U.S. IPO, Alibaba has received approval from the NYSE (NYX, ICE) and Nasdaq (NDAQ) to maintain management/founder control of its board, should it list on one of the exchanges. Hong Kong's unwillingness to agree to the same had led the Chinese e-commerce giant to pursue a U.S. listing.
Alibaba, whose Q2 numbers were released last week by 24% shareholder Yahoo (YHOO +1.8%), will likely have a $100B+ IPO valuation, given the current multiples being assigned to U.S. and Chinese Internet names. That means its offering could exceed Facebook's in size, and will easily dwarf Twitter's.
The NASDAQ OMX Group (NDAQ) is rolling out eight new indexes this week to add to their popular BulletShares traditional bond ladder product line.
Executive Vice President, John Jacob, stated in a press release that the indexes "are the next step for NASDAQ and Accretive Asset Management in creating new ways to measure fixed income investing."
Historically, Guggenheim has used the BulletShares Indexes as a starting point for their BulletShares ETFs; and while no plans have been made public yet, it is safe to assume these 8 new indexes will eventually lead to ETFs.