Google cuts price of shares

Google’s much-anticipated stock market debut took a further twist todaywhen it cut the price range of its share sale.

The internet search company reduced the range to $85 to $95 (€69 to €77) from a previous level of $108 to $135 (€88 to €110).

Google also said that in view of the new price, less stocks would be made available to the public.

The news came as the group awaited the go-ahead for its flotation after failing to secure final clearance from regulators last night. Google did not give a reason why it had cut the price range.

Google originally planned to sell 26 million shares on the tech-heavy Nasdaq stock market, but a total of 19.6 million shares will now go on sale.

Analyst Hilary Cook at Barclays stockbrokers said she was not surprised by the move.

She said: “We thought Google was expensive and we are not surprised that they cut it. They recognised there wasn’t the appetite for the shares.”

Google had hoped for the green light from the Securities and Exchange Commission (SEC) last night – a move that would have enabled it to close the auction that is determining its share price.

No reason has been given for the delay although analysts remain confident the sale can progress after Wall Street closes tonight.

Google unveiled plans to float in April and surprised the market by opting to sell its shares via a Dutch auction, which gives individual investors a better chance of acquiring a stake in the company.

The price is determined by the investors, who state how much they are willing to pay for each share.

The highest bidders are guaranteed a stake in the company and the issue price is set by the lowest bid after all shares are allocated.