Facebook shares fall two days in a row

Facebook’s initial public offering is getting less friendly with each passing day.

Investors and regulators raised new concerns about the $16 billion (€12.7bn) IPO after Facebook shares fell for a second straight day yesterday, extending losses to 18% below the $38bn offer price.

Morgan Stanley, the lead underwriter, released a statement defending its handling of the May 17 IPO after the Massachusetts securities division yesterday subpoenaed the investment bank over its communications with clients.