Morgan Stanley to adjust price on Facebook trades
AP Photo/Richard Drew
(CNET) The Facebook (FB) IPO can now safely be said to rank among the sloppiest tech offerings in recent memory. In the latest installment of this "clusterzuck," Reuters has obtained an internal memo reporting that Morgan Stanley is ready to make price adjustments for retail customers if they paid too much during Facebook's debut as a public company last Friday.
The investment bank confirmed to Reuters the contents of the memo that, among other things, says that "all orders are currently being reviewed for best execution pricing." It also says that Morgan Stanley (MS) expects "there will be a number of price adjustments. The largest adjustments will be processed first over the next several days and the remaining adjustments will be completed as quickly and as thoroughly as possible."
Meanwhile, shareholders have already begun filing lawsuits against Facebook and several banks, alleging that certain material information was concealed prior to last week's IPO.
Facebook's stock opened Friday priced at $38, briefly ran up and then traded lower until today, where it was up more than 3 percent in mid-afternoon trading. The circumstances surrounding the IPO raised further questions when the Nasdaq had to fight its way past technical problems that delayed the opening of trading by about a half hour.
And then late Tuesday, Henry Blodget claimed that a Facebook executive disclosed to institutional investors, but not smaller investors, about the downward revision in revenue estimates.
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