Facebook adding banks for IPO-sources

SAN FRANCISCO Sat Mar 3, 2012 4:45am IST

Facebook Vice President of Product Chris Cox delivers a keynote address at Facebook's ''fMC'' global event for marketers in New York City February 29, 2012. REUTERS/Mike Segar

Facebook Vice President of Product Chris Cox delivers a keynote address at Facebook's ''fMC'' global event for marketers in New York City February 29, 2012.

Credit: Reuters/Mike Segar

Stocks

   

SAN FRANCISCO (Reuters) - Facebook Inc FB.N will add banks in coming weeks to help underwrite its initial public offering, two sources familiar with its plans said on Friday.

Deutsche Bank (DBKGn.DE), Credit Suisse CSGNNY.UL and Citigroup (C.N) are among the banks that will likely be added, said the sources, who requested anonymity because they were not authorized to speak publicly on the matter.

Last September, Facebook increased its credit line to $2.5 billion.

One of the sources said that the credit line may be increased to about $5 billion in the future.

In February 2011, Facebook set up a $1.5 billion credit agreement with affiliates of Morgan Stanley (MS.N), JPMorgan Chase & Co (JPM.N), Goldman Sachs (GS.N), Bank of America Merrill Lynch (BAC.N) and Barclays Capital (BARC.L), the leading underwriters of the company's IPO.

Facebook plans to increase its credit line to help cover a tax bill related to employee stock awards that will vest soon after it goes public.

On February 1, Facebook filed regulatory documents for an IPO.

Bloomberg reported earlier on Friday that Facebook would add banks to its roster of IPO underwriters.

A spokesman for Facebook declined to comment. Representatives for Deutsche Bank, Citigroup and Credit Suisse also declined to comment.

(Reporting By Alistair Barr; Editing by Bernard Orr)

FILED UNDER:

Monetary Policy Committee

Reuters Showcase

Microfinance

Microfinance

Funding the unfunded: India helps small business borrow to grow  Full Article 

Insurance Sector

Insurance Sector

UK healthcare firm Bupa sees strong growth in India  Full Article 

Sensex Rises

Sensex Rises

Sensex edges up; consumer and healthcare stocks rise  Full Article 

Market Eye

Market Eye

FTSE adds nine Indian firms as large-caps in Asia-Pacific ex-Japan index   Full Article 

Indian Ocean Diplomacy

Indian Ocean Diplomacy

PM Modi to ramp up help for Indian Ocean nations to counter China influence  Full Article 

ECB Bond-Buying

ECB Bond-Buying

ECB raises growth forecasts, to start printing money next week  Full Article 

China Economy

China Economy

China signals "new normal" with lower annual growth target  Full Article 

Pharma Sector

Pharma Sector

Panel recommends waiving late-stage trials for some drugs  Full Article 

E-commerce

E-commerce

China backs e-commerce expansion in win for Alibaba, JD.com  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage