Wall Street continues to buzz about Morgan Stanley’s big win in the Facebook IPO sweepstakes--and Goldman Sachs’ big loss.
Recall that the latter bank didn’t even come in second. That honor went to JPMorgan Chase. The other banks in the top tier are Bank of America Merrill Lynch, Barclays and Allen & Co.
Breakingviews surveys the list of banks notable for their absence. Credit Suisse is not on the list, despite the fact that it was one of the lead banks on the Groupon IPO, which has not fared well in the aftermarket. Deutsche Bank was also left out.
“But the big hometown absentee is Citi. The bailed-out megabank has had a harder time hoisting its flag on the West Coast, so expectations it would have nabbed a role in the Facebook deal might have been low. It must nevertheless be a disappointment, especially given the IPO’s links to a couple of the firm’s alumni. Citicorp Venture Capital veterans Arthur Patterson and Jim Swartz co-founded Accel Partners, the firm that turned a nearly $13 million Facebook investment into what could be $9 billion.”
All three banks will likely eventually make it on the list of underwriters. This deal is going to be the gravy train of the year, and just about every investment bank with distribution capacity will be in on it. The list of underwriters will likely be comparable to the list for the Google IPO.
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Goldman Sachs slighted in Facebook IPO
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