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Quiet Period Over, Hambrecht Speaks

SFGate interviews Bill Hambrecht, whose firm was an innovator in the auction style approach that Google pursued in its IPO. Google’s quiet period lifted earlier this week. Excerpts:

“That everyone who bid 85 or higher got the shares is a remarkable achievement in a world where hot issues are doled out in a favored way,” (Hambrecht said)….

….Ultimately, though, Google decided on a hybrid offering in which lead investment banks Morgan Stanley and CS First Boston required the largest U.S. investment firms to place their bids through those two banks exclusively.

That led to a process that was “a compromise between the interests of the (lead) bankers and the interests of the company,” Hambrecht said.

“It wasn’t an IPO auction in the purest sense,” he said. “I think it worked almost in spite of itself,” he said….

…Neither Hambrecht nor Corbus would disclose what the clearing price was for the entire auction, citing a confidentiality agreement with Google.

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