Goldmans rules US clients out of $1.5bn Facebook deal

Goldman Sachs has scrapped plans to offer its top US clients an exclusive share offer on Facebook as it fears the high level of interest could lead to a breach of securities laws.

Earlier this month, the bank invested $450m in the social network company at a price that valued Facebook at $50bn. It was later reported Goldmans was looking to raise $1.5bn for Facebook through a private placement for its top clients. But the publicity surrounding the deal has been blamed for the scrapping of US client involvement in order to adhere to rules surrounding the promotion of private shares. Goldmans says there a "publicity-driven feeding frenzy" following reports of the share offer. The bank now says it is too risky to allow some clients to profit while others are ...